- Telecommunications Giant Vodafone Leaves the Libra Association
- Group of Central Banks Assesses Developing Central Bank Digital Currencies
- South Korea Might Impose 20 Percent Tax on Cryptocurrency Profits
- Report: Terrorists Increasingly Use Crypto to Raise Funds Anonymously
- Canadian Securities Administrators Subject Crypto Exchanges to Securities Laws
The infamous cryptocurrency exchange and trading platform Bitfinex has announced on November 5 that it has halted the sale of K.im token on its Bitfinex Token Sale platform for an uncertain period of time due to regulatory issues.
Bitfinex further affirmed that the developer of K.im will keep users notify about the token sale once the K.im platform will be fully functional and that everything that surrounds it will comply with current regulations. K.im might choose the route of equity-based offering for the investors who were planning to take a part in the token sale on Bitfinex.
Bitfinex said in its announcement:
“Since we announced the debut of Kimcoin on the Bitfinex Token Sale platform, the regulatory environment has rapidly evolved. The risks associated with raising funds for the K.im token sale have become clear, and we must put our community’s best interest first and foremost.”
K.im is a blockchain-based content monetization platform that aims to become the easiest and most secure way to generate revenue with digital content. Founded by Kim Dotcom, Megaupload creator, K.im removes intermediaries between digital content creators, and publishers help the creator to generate more in revenue.
K.im is designated to be the native virtual currency of platform, which will primarily be used to trade content on the platform. As stated in the whitepaper of K.im, currently multiple intermediaries take their generous cuts, and due to which content publishers aren’t able to distribute much in revenue. K.im wants to distribute 95% of the revenue generated to content creators which in result will bring in more audience to the platform.
Bitfinex and the team behind K.im carefully analyzed the situation and mutually concluded to postpone the token sale of K.im. From the announcement:
“After careful evaluation, we regret to announce that Bitfinex Token Sales and the K.im team have mutually agreed not to hold the token sale at this time. K.im will defer any decision on whether to create tokens on, or undertake a token issue in relation to the K.im platform until it is fully functional.”
Clamping Down on Crypto
Since the birth of cryptocurrencies, they have been widely known for their association with illegal activities such as money laundering, buying illicit substances on the dark web, etc. Apart from that, there are several other reasons why lawmakers around the world are concerned about digital assets and one of them is its potential to replace the traditional government-controlled fiat currency (such as the USD) with decentralized digital currencies.
Due to the abovementioned reasons, financial authorities have strict regulations on crypto assets which have thus created a tough environment for small or medium size crypto companies that are planning to hold token sales. This might exactly be the case with the K.im token sale.