Dave - Cryptocurrency Enthusiast
Following the case brought against crypto influencer and CEO of Token Metrics Ian Balia, the U.S. Security Exchange Commission (SEC) asserts that the U.S. government still has authority over Ethereum. For failing to declare his coin as security before the Initial Coin Offering (ICO) in 2018, the defendant was sued on Monday.
The SEC has been suing people and businesses for unregistered ICO concerns, so even though the case first seemed routine, it eventually took a different turn.
The critical argument made by the SEC in the lawsuit's 69th paragraph, which was audacious and unheard of, caught many people's attention.
The SEC claims the following in the 69th paragraph of the lawsuit:
When the U.S.-based investors in Balina's pool had their ETH contributions validated from within the country at that point by a network of nodes on the Ethereum blockchain, which is clustered more densely in the United States than in any other country, they became irrevocably committed to the transaction. Consequently, those transactions happened in the US.
The SEC claimed in the complaint that it was entitled to sue Balina because, in addition to the fact that the transactions took place in the United States, the majority of all ETH nodes (45–85%) that validate transactions are located in the United States, which logically falls under the jurisdiction of the American government.
The crypto community was alarmed by this idea, and some people commented on Twitter.
Although the complaint's phrasing lacks the legal authority for the court to uphold it, University of Kentucky law professor Brian Fyre expressed skepticism about it.
While Gary Gensler, the chair of the SEC, disagrees with Fyre's assessment, he believes that as Ethereum switches to proof-of-stake, it is more in line with the government's definition of security. Ian Balina then responded to the SEC's allegations, pointing out their lack of merit.
As Ethereum recently switched to proof-of-stake its price went down, though others believe that it is only temporary. If you believe that ETH price will go up and you do not know how to invest in it, you can visit BCBitcoin – a platform where you can find various guides that would help you learn more about cryptocurrency. Also, BCBitcoin provides such services as coin swap, buying crypto, as well as crypto asset management by keeping customers' currencies safe and sound.
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards