There can be no question that regulatory requirements are on the rise - particularly relating to stablecoins and those determined to have investment character rather than being considered having utility token characteristics. In fact, the current altcoin dump is based on XRP regulatory issues - and on the simultaneous Bitcoin rise.
In particular, the price of cryptocurrency XRP plunged after the SEC filed a lawsuit alleging that Ripple Labs sold more than $1 billion of XRP tokens without registering with the agency. The SEC alleges that Ripple founders intentionally ignored legal advice that the XRP could be considered an investment contract and indeed was a security - not a utility token, and therefore be subject to regulation. Interestingly enough, it is only about 10% of XRP investors/hodlers are domiciled in the US and Ripple even considered moving to different jurisdiction. Promptly, some exchanges delisted XRP in order to avoid getting into legal troubles themselves.
Regulators in the US are now also considering requiring KYC with stablecoins. As always, proposing regulators always have best the interest of the people in mind, such as to protect "the low- and moderate income residents of color". The fact that stablecoins are increasingly viewed as a threat is obvious. "Kill it or tax it" - a well-established recipe is firmly on the horizon, at least as far as the US is concerned.
As has been described earlier, Syscoin will provide a network-enforced compliance tool set with coming Syscoin 4.2 - currently in closed testnet., a solution that fills a crucial gap in today’s meeting those challenges. An earlier post summarized this unique solution and for a more detailed description follow this link!
This invention, another pioneering development by Syscoin makes it possible for stablecoins to opt-into non-custodial regulatory compliance that is enforced by a decentralized Peer-to-Peer blockchain network, and it works at scale. No wonder then that the entire family of TrustTokens (TUSD, TCAD, THKD, etc) decided to rely on Syscoin, in preparation of meeting compliance issues ahead. There is little doubt that others will follow this path as well.
Essentially, with Syscoin 4.2. SPT (Syscoin Platform Tokens) token creaters can set rules to meet regulatory requirements for any token transaction - be that geographical or otherwise. Keep in mind that with the Syscoin-Ethereum bridge such rules can be set for any ERC-20 token (Ethereum) using said bridge as well.
Hence, If you want to explain Syscoin to anyone in one sentence, try this:
Syscoin is the only blockchain that provides for opt-in regulatory compliance that is adaptive & consensus driven, built atop a permissionless bitcoin-core-compliant merge-mined blockchain, providing a UTXO scalability with near-instant third party verified asset layer with z-dag in excess of 60k TPS under realistic network conditions & interoperability with Ethereum that has been on mainnet for almost a year now.
If people knew that, $SYS would be rising with $BTC. But it may take a few more months as Syscoin 4.2. is scheduled to go mainnet in Q1 2021!
Currently in closed testnet, Syscoin 4.2. is scheduled to go public testnet shortly.
Don't miss it!
Because the gains made from BTC today will flow into quality projects facilitating serious adoption tomorrow!
For those interested in the latest developments, please visit the official Syscoin Website at https://syscoin.org or join the Discord channel to chat at https://discord.gg/RkK2AXD . Support Wiki and Discussions can be found at https://support.syscoin.org
And finally, if you are looking for links to media, exchanges, masternode hosting providers, wallets, downloads, latest news, videos, news releases,
social media accounts and more, don't forget to visit https://syscoin.network/syslinks - a community website which is maintained by the author of this post:
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