Cryptopia announces its intention to delist 25 coins that are considered "Financial Product" as it tries to remain compliant with laws and regulation in New Zealand. Some of these coins are well known names and others are just getting traction to their project which would definitely set them back as they hope to get listed on bigger exchanges.
The list of coins include:
#Aureus (AURS)
#Bitradio (BRO)
#ChronosCoin (CRX)
#DCORP (DRP)
#DDF (DDF)
#DecentBet (DBET)
#LFTCCoin (LFTC)*
#ProudMoney (PROUD)
#OX Fina (OX)
#21Million (21M)
#BitcoinDark (BTCD)
#BlockOptions (BOP)
#Bonpay (BON)
#NeuroDAO (NDAO)
#CrowdCoin (CRC)
#DigiPulse (DGPT)
#DRP Utility (DRPU)
#EncryptoTel (ETT)
#Futereum X (FUTX)
#HomeblockCoin (HBC)
#InterstellarHoldings (HOLD)
#Lithiumcoin (LIT)
#MatrixCoin (MATRX)
#PlexCoin (PLX)
#TenX (PAY)
The cryptocurrency exchange remains committed to enthusiast but warns that further delisting could be on its way. It outline steps for users to withdraw funds
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This development would add further fuel to the "What is a Security?" debate that is currently taking place in the USA. Interestingly, the concept of a "Financial Product" in New Zealand is similar to what is considered a security in the United States of America.
In the United States of America, a security is considered a fungible negotiable financial financial instrument that holds some type monetary value that represents some form of ownership position in a publicly-traded corporation, a creditor relationship with a governmental body or corporation or rights to ownership of an asset that can be later sold.
This has cause some uneasy times within the cryptocurrency ecosystem as crypto does not really hold stated classification. In fact, most cryptocurrency exchanges are just 'registered financial service providers' and are not license with several exchanges trying to gain these licenses in varying jurisdiction. This matter can go on for many years as interpretation are quite opaque but regulators can use this as a tag of war game to hold enthusiast hostage.
For Steemians, I have recently seen folks used the analogy of Steem power as having ownership just like a publicly traded stock. While I understand the enthusiasm, this is an erroneous statement given the climate many project find themselves under. As for my understanding, with Steem power you simply have influence, and that should be explicitly stated, no one is owning anything. We have some thing we brush aside on this platform and this one certainly should be dealt with, I sent a message to one writer with no response but before army that preaching that gospel, its important to strike it down. Before regulators can point fingers or even haters who can run with the smallest of things, we should avoid those roads.
Given the interpretation of the Cryptopia to deem these coins as financial products, what should be the interpretation of coins that offer a dividend payments or profit sharing/fee reducing tokens?
Sources
https://support.cryptopia.co.nz/csm?id=kb_article&sys_id=91697d9edb1e9bc032a664a14a9619e3
Coins mentioned in post: