With most governments waging a war of sorts against cryptocurrency, the SEC’s action is not all that surprising. Recently, KIK, a popular messaging app, had shut down its popular messaging service. The messaging service was highly popular among several smartphone users but the reasons offered were indeed a tad puzzling at the start. Later, KIK’s founder came out with a clarification and stated that they had to close KIK given the upcoming legal challenges and controversies surrounding its cryptocurrency, Kin.
Ted Livingston informed all that the company intends to challenge the SEC and make it clear as to how its cryptocurrency is maintained and regulated. It remains to be seen if SEC is open to any clarifications on the issue. As it is KIK, was used by over 300 million users, and it is highly popular. So the fact that it was shut down is bound to impact several teens across the US. Furthermore, Ted stated that its core employees would be trimmed down to just 19 or so as they take on the SEC. According to Ted, SEC wanted to label the currency as security which would directly impact the usability of the cryptocurrency.
But the founder was firm in his resolve to back Kin and pointed out that several users across the world widely use it. And that they intend to see this challenge all the way through. It should also be pointed out that this battle is set to take place just as Facebook announced its cryptocurrency Libra. It is unlikely that the SEC will reverse its actions and it may well stop Kin from being used in the US as well as Europe.