Kik Interactive to Pay $5M Fine under Proposed Settlement with SEC
- Kik and the SEC, at odds over the last two years, have finally agreed on how to settle the 16-month-long court case.
Kik Interactive, the Canadian crypto startup that raised $100 million from an online 2017 initial coin offering, is a step closer to end its long battle with the US regulators. Today, the US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Commission (SEC) revealed a proposed settlement with Kik that involves civil penalties, as well as limitations for any future plans to revive its crypto ambitions.
Kik and the SEC, at odds over the last two years, have finally agreed on how to settle the 16-month-long court case.
Under the proposed settlement, filed today by the SEC, Kik would pay $5 million in fines and must provide the SEC with a notice if it wants to attempt a token sale again. The notification, which is not a request for approval, should come 45 days prior to the planned issuance, the settlement reads.
But, compared with SEC settlements concerning ICO cases, the proposed settlement does not oblige Kik to return money to the investors who purchased its token.
Kik’s legal battle showed how the social media platform was ready to go to any extent possible to refute the SEC’s claim that its ICO falls into the regulator’s trap. The company argued that the SEC was not entitled to take enforcement action and that the Securities Act runs afoul of due process as it fails to give adequate guidance about the 'investment contract' term.
Let’s recall that the predominant question in the Kik case is whether cryptocurrency is a security, the public offering of which would require registration under the Securities Act.
SEC Refutes Kik’s Allegations
For its part, the SEC explained to the court that the argument that 'investment contract' under the Securities Act is void for vagueness was 'untenable' in light of the many Supreme Court decisions defining and applying the term.
The Ontario-based startup also geared up to challenge the SEC’s top officials themselves by issuing multiple subpoenas. Kik argued that any action taken by the SEC would only harm token holders, and thus be against the regulator’s claim that it wants to protect ICO investors. However, the SEC managed to quash Kik’s subpoenas and asked the court to ultimately toss its motions on several grounds, including that the testimony may constitute a sort of 'admission' that Kik can use against the agency in litigation.
Kik’s litigation hit the headlines throughout the last two years and then culminated in a court case, where a judge ruled in favor of the SEC that Kik’s $100 ICO was a securities sale. Indeed, some believed that Kik, as the first crypto issuer to publicly contest the SEC’s claims, is an important industry test case that was hoped to ultimately force a change in the way the agency regulates cryptocurrencies.
Kik Interactive, the Canadian crypto startup that raised $100 million from an online 2017 initial coin offering, is a step closer to end its long battle with the US regulators. Today, the US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Commission (SEC) revealed a proposed settlement with Kik that involves civil penalties, as well as limitations for any future plans to revive its crypto ambitions.
Kik and the SEC, at odds over the last two years, have finally agreed on how to settle the 16-month-long court case.
Under the proposed settlement, filed today by the SEC, Kik would pay $5 million in fines and must provide the SEC with a notice if it wants to attempt a token sale again. The notification, which is not a request for approval, should come 45 days prior to the planned issuance, the settlement reads.
But, compared with SEC settlements concerning ICO cases, the proposed settlement does not oblige Kik to return money to the investors who purchased its token.
Kik’s legal battle showed how the social media platform was ready to go to any extent possible to refute the SEC’s claim that its ICO falls into the regulator’s trap. The company argued that the SEC was not entitled to take enforcement action and that the Securities Act runs afoul of due process as it fails to give adequate guidance about the 'investment contract' term.
Let’s recall that the predominant question in the Kik case is whether cryptocurrency is a security, the public offering of which would require registration under the Securities Act.
SEC Refutes Kik’s Allegations
For its part, the SEC explained to the court that the argument that 'investment contract' under the Securities Act is void for vagueness was 'untenable' in light of the many Supreme Court decisions defining and applying the term.
The Ontario-based startup also geared up to challenge the SEC’s top officials themselves by issuing multiple subpoenas. Kik argued that any action taken by the SEC would only harm token holders, and thus be against the regulator’s claim that it wants to protect ICO investors. However, the SEC managed to quash Kik’s subpoenas and asked the court to ultimately toss its motions on several grounds, including that the testimony may constitute a sort of 'admission' that Kik can use against the agency in litigation.
Kik’s litigation hit the headlines throughout the last two years and then culminated in a court case, where a judge ruled in favor of the SEC that Kik’s $100 ICO was a securities sale. Indeed, some believed that Kik, as the first crypto issuer to publicly contest the SEC’s claims, is an important industry test case that was hoped to ultimately force a change in the way the agency regulates cryptocurrencies.