Do you know how much it costs to get entangled with the SEC? According to foreign media Coindesk, the CEO of Canadian instant messaging startup Kik said in an interview that the company has spent more than $5 million to negotiate with the US SEC.
This is the case. At the beginning, the SEC stated that the token sale by Kik two years ago (Kik raised $97 million in the interaction) violated the securities laws and recommended that the company be forced in November 2018. After the measure. However, the SEC did not immediately take action against Kik, but first sent a "Wells Notice" to Kikj asking Kik to respond within 30 days. This also gave Kik a chance to breathe.
In an interview with The Wall Street Journal, Ted Livingston said that Kik has spent more than $5 million on negotiations with the SEC on this matter:
"We have spent a lot of time on this issue, and we have been rushing to Washington for the past 18 months."
In January of this year, the company also warned US regulators that it would oppose the proposed enforcement actions against it.
Last week, Amy Starr, director of the US Securities and Exchange Commission's (office) capital markets trends, said the SEC was willing to interact with local encryption and blockchain-related companies. Stahl believes that US securities laws are "flexible."
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