The United States SEC has made news yet again in its pursuit of the founder of EtherDelta, a DEX. The SEC charged founder Zachary Coburn with the the operation of an unregistered securities exchange. Although he avoided admitting or denying the charges levelled against him, Coburn ended up paying $388,000 in "penalties, disgorgement, and interest" under the terms of his settlement.
This case sets the precedent for a more aggressive pursuit of DEX staff and founders, busting the myth that a move to a decentralised platform allows founding members to avoid legal issues simply due to their lack of control. Decentralised predictions market Augur made headlines at one point for the existence of assassination prediction pools. While they were mostly exonerated by the blockchain community due to their lack of control of the platform, it appears that the SEC does not forgive so easily.
At XCH4NGE, we understand that crypto regulation isn't a question of if it's coming, it's a question of when. In order to safeguard our platform (and our users), we are proactively engaging with the FCA to be fully compliant.
We are a licensed data controller through the ICO, a full member of the Electronic Money Association, and are currently on track to receive our EMI license in early 2019. We believe that every users deserves a safe, legal experience when managing their assets, which is why we take every measure to be prepared for future regulation.
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