The SEC charges Zachary Coburn with iperating unregistered exchange. EtherDelta has features typical to traditional exchanges. The US Securities and Exchanges Commission charged Zachary Coburn, the founder of EtherDelta, with operating unregistered securities exchange. EtherDelta is a decentralized trading platform and a secondary market for ERC-20 tokens, issued for crowdfunding purposes via initial coin offering (ICO), which are considered as securities under the existing SEC’s ruling. EtherDelta served as a marketplace for buyers and sellers for the security-like digital asset securities. They were able to settle deals via a dedicated order book, while orders were displayed on the website. The EtherDelta’s smart contract used to execute the orders was coded to validate the order messages, confirm their terms and conditions and update the distributed ledger. “EtherDelta had both the user interface and underlying functionality of an online national securities exchange and was required to register with the SEC or qualify for an exemption,” Stephanie Avakian, Co-Director of the SEC’s Enforcement Division, commented in the official press release. The regulator stressed that the overwhelming majority of EtherDelta orders were executed after the notice of 2107, where the SEC determined that tokens as securities. However, the exchange was not registered with the SEC and never applied for a waiver under the Federal securities laws. “We are witnessing a time of significant innovation in the securities markets with the use and application of distributed ledger technology. But to protect investors, this innovation necessitates the SEC’s thoughtful oversight of digital markets and enforcement of existing laws.” Zachary Coburn neither accepted nor denied his guild, but consented to pay $300,000 in disgorgement, $13,000 in prejudgment interest, and a $75,000 penalty. The SEC confirmed that Coburn had cooperated with the regulator and thus avoided greater penalties. This case has become the first precedent of charges towards the platform that has never dealt with fiat currencies. Also, it means that the SEC places all Ethereum-based tokens on one shelf with securities. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street Crypto News share Read Next USD/JPY now focused on 114.54 – UOB FX Street 4 years The SEC charges Zachary Coburn with iperating unregistered exchange. EtherDelta has features typical to traditional exchanges. The US Securities and Exchanges Commission charged Zachary Coburn, the founder of EtherDelta, with operating unregistered securities exchange. EtherDelta is a decentralized trading platform and a secondary market for ERC-20 tokens, issued for crowdfunding purposes via initial coin offering (ICO), which are considered as securities under the existing SEC's ruling. EtherDelta served as a marketplace for buyers and sellers for the security-like digital asset securities. They were able to settle deals via a dedicated order book, while orders were displayed on the website. The… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.