SEC puts decentralized exchanges on notice

Robert Cohn, the chief of the SEC’s newly created cyber unit, told Forbes that a decentralized cryptocurrency exchange does not remove the original creator’s responsibility for that exchange. “The focus is not on the label you put on something or the technology you’re using,” says Cohn. “The focus is on the function, and what the platform is doing. Whether it’s decentralized or not, whether it’s on a smart contract or not, what matters is it’s an exchange.”

On Thursday, CoinDesk reported that the SEC had charged Zachary Coburn, the founder of decentralized cryptocurrency exchange EtherDelta, in what the agency referred to as the “first enforcement action based on findings that such a platform operated as an unregistered national securities exchange.” Coburn ultimately agreed to pay $300K in disgorgement plus $13K in prejudgment interest and a $75K penalty, without admitting or denying the SEC’s findings. (Source: Forbes)

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SEC puts decentralized exchanges on notice written by Mike McCaffrey @ https://www.theblockcrypto.com/tiny/sec-puts-decentralized-exchanges-on-notice/ November 11, 2018 Mike McCaffrey

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