• INX executive, Itai Avneri, believes the era of trading cryptocurrencies as non-securities is over.
• INX only lists five cryptocurrencies on its platform due to legal implications and considers them non-securities.
• Other exchanges like Coinbase and Binance.US have faced lawsuits for offering a wide range of coins.
SEC Regulated Trading Platform
The blockchain trading firm INX is regulated by the U.S Securities and Exchange Commission (SEC). Its chief operating officer, Itai Avneri, has noted the legal implications of recent enforcement actions against U.S-based exchanges like Coinbase and Binance.US, stating that the “era of trading cryptocurrencies as non-securities is coming to an end”.
Limiting Cryptocurrency Offerings
In contrast to other exchanges like Coinbase or Binance.US which offer a wide variety of coins – 241 and 154 respectively – INX has limited its offerings to just five cryptocurrencies: Bitcoin (BTC), Ether (ETH), USD Coin (USDC), Avalanche (AVA) and Litecoin (LTC). These coins are considered non-securities since they are listed on a SEC-regulated platform; however, Ethereum’s status as a security remains unclear at this time, with many discussions still taking place around it.
Coinbase & Binance US Lawsuits
United States-based exchanges like Coinbase and Binance.US have faced lawsuits due to their wide array of offered coins; however, both were able to compromise with regulators in terms of asset freezes in order to continue operations. This highlights the importance of understanding cryptocurrency laws in order to avoid any legal issues from arising when conducting business related activities within the industry.
INX’s Outlook
INX outlined its idea regarding cryptocurrencies not being securities five years ago in its prospectus according to Avneri who believes that a massive amount of coins offered for trading on crypto exchanges is among the core reasons for these legal issues occurring in the first place.. He also stated that while Bitcoin definitely isn’t a security, there is no clear definition yet for Ethereum’s status as such either but it is listed on INX nonetheless.
Conclusion
In conclusion, although there may be some confusion about Ethereum’s status as a security, it is becoming increasingly clear that cryptocurrency trading platforms must adhere strictly to regulatory guidelines set forth by governing bodies such as the SEC in order to remain compliant and continue operations without any legal ramifications occurring down the line