ERC20 Tokens – Billionaire365

The US SEC Fined EtherDelta, An Ethereum (ETH) and ERC20 Exchange, For Operating Without A License

The US Securities and Exchange Commission (SEC) sanctioned Zachary Coburn, founder of Ethereum’s decentralized Ethereum (ETH) and ETH tokens exchange platform, EtherDelta, with $388,000, alleging that the startup operated as an unauthorized cryptocurrency exchange. The regulator said Thursday, November 8th, that EtherDelta “was required to register with the SEC or qualify for an exemption.”

In the press release, the SEC said this is the first action it has taken “based on the findings that the platform operated as a national means of exchanging unlicensed securities.” Also, the officials said EtherDelta provided a market for buyers and sellers to exchange tokens “using an order book, an order display website, and a smart contract based on Ethereum (ETH).”

The US regulators noted that, over an 18-month period, EtherDelta crypto exchange’s users executed more than 3.6 million orders for ERC20 tokens, “including tokens that are securities under federal securities laws.”

The US Securities and Exchange Commission (SEC) Fined EtherDelta Ethereum (ETH) Crypto Exchange For Operating Without A License

The US Securities and Exchange Commission’s decision marks a precedent that could impact the creation and development of decentralized crypto exchange projects. Stephanie Avakian, co-director of the SEC’s Enforcement Division, noted that “EtherDelta had both the user interface and the underlying functionality of a national online stock exchange and was required to register with the SEC or qualify for an exemption.”

Without admitting or denying the facts, Zachary Coburn agreed to pay $388,000 in penalties broken down into $300,000 in profit returns, $13,000 in interest, plus a fine of $75,000.

EtherDelta attracted media attention back in December 2017 when its platform was hacked, putting users’ information and funds at risk. The system is used to exchange Ethereum (ETH), the Ethereum blockchain’s native cryptocurrency, as well as other tokens created on this network, known as the ERC20 tokens, among others.

Anna Galvez

BitGo To Add Support For 57 Ethereum ERC20 Tokens

The BitGo startup announced today, July 10th, that it would begin to support 57 Ethereum ERC20 tokens. The company seeks to increase its services among institutional investors and list more than 100 cryptos by the end of 2018. The product offered by BitGo will meet the demand for the protection of private keys that act as keys to crypto actives, according to CoinDesk.

The ERC20 token is an interface that seeks to ensure interoperability between tokens. In other words, it is a set of Ethereum (ETH) tokens that are adjusted to different parameters.

Benedict Chan, CTO of BitGo, explained that the company has realized that there is a growing need for custody solutions for alternative cryptos. Chan refers to corporations that are already in the cryptocurrencies market or those that are thinking of entering this ecosystem.

These institutions, in general, do not want to self-manage their currencies. They’re looking for someone who can handle multiple cryptocurrencies.

Benedict Chan, BitGo CTO

BitGo addresses institutional cryptocurrency investors with it new additions

BitGo will support Kin cryptocurrency, which has been developed by the Kik instant messaging application, and Civic (CVC), which runs on a blockchain identity protection venture, as well as other native tokens for decentralized exchanges. According to Isaac Eleftheriadis, BitGo’s product manager, “every token added in this first batch was explicitly requested by BitGo’s institutional customers.”

“There were cases where customers asked us to support their ERC20 token. They don’t want to do the ICO until BitGo can retain all their tokens,” Eleftheriadis added.

Companies looking for this type of service are those that invest in cryptos and need a custody platform, and one of their needs is for “hot wallets” to enable them to safely and rapidly mobilize deposits or withdrawals of cryptocurrencies.

On the other hand, some customers also need “cold wallets” with the intention of keeping the cryptos without any risk thinking more about the medium and long-term investments.

Anna Galvez