Animoca Brands Not Concerned by SEC Deeming SAND a Security
• Hong Kong-based Animoca Brands is unfazed by the SEC deeming the SAND cryptocurrency a security in its recent complaints against Binance.US and Coinbase.
• Animoca co-founder and chairman Yat Siu said that the firm operates globally and is not overly concerned with what happens in one jurisdiction.
• Siu said that due to the “blockchain-hostile” approach of regulators in the U.S., the firm has focused on non-U.S. markets, which will be further emphasized now more than ever.
SEC’s Complaint Against Binance and Coinbase
The U.S. Securities and Exchange Commission (SEC) recently issued complaints against Binance US and Coinbase for allegedly violating federal securities laws relating to their offering of digital asset securities, including SAND tokens, without registering them as such with the SEC or qualifying for an exemption from registration requirements. The complaint alleges that both exchanges offered trading of these assets without adhering to applicable requirements under federal law, leading to potentially significant investor losses if any of those digital assets are deemed securities by the SEC or other regulatory bodies.
Animoca co-founder and chairman Yat Siu told South China Morning Post that while he is not overly concerned with what happens in one jurisdiction, his firm has been focusing on non-U.S markets due to regulators taking a “blockchain hostile” approach in America towards cryptocurrencies such as SAND token – leading it to place even more emphasis on other markets now more than ever before.
Implications for Companies
The SEC’s conviction that many cryptocurrencies are securities will have legal implications for companies involved in offering digital assets, particularly those operating within U.S jurisdictions, who could face significant penalties if they fail to register their assets with appropriate authorities or qualify for an exemption from registration requirements firstly established by The Securities Act 1933 & 1934 .
Despite potential legal repercussions for companies involved in offering digital asset securities within U.S jurisdictions , Animoca Brands remains unfazed by the recent events involving SAND token , retaining its focus on non-U .S markets due to America’s “blockchain hostile” approach towards cryptocurrencies .