Week review | Kin Foundation launches fundraising challenge SEC, Australian Securities Regulatory Agency launches ICO guide

This week, Bitcoin hit a new high of $9000. The Kin Foundation launched a cryptocurrency crowdfunding campaign to launch a lawsuit against the US SEC and received industry support. The Australian Securities and Investments Commission (ASIC) issued a new ICO and cryptocurrency guide on its official website on May 30th.

The Kin Foundation launched a cryptocurrency crowdfunding campaign to launch a lawsuit against the US SEC and received industry support. Kik, a Canadian-based social software company, launched an encrypted crowdfunding campaign to fund its possible court litigation against the US Securities and Exchange Commission's 2017 initial public offering (ICO). The crowdfunding campaign is starting, and it is hoped that "the lawsuit will eventually enable the SEC to conduct a new Howie test on crypto tokens to determine which securities are in place." The funds it raises will not only support Kik, but will also support other encryption companies that are also facing the possibility of litigation by US regulators. The site offers 19 cryptocurrencies as a donation option, including mainstream cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and XRP. The lawsuit was supported by project teams such as Circle and Poloniex.

The Australian Securities and Investments Commission (ASIC) issued a new ICO and cryptocurrency guide on its official website on May 30th. Recently, the Australian Securities and Investments Commission updated its regulatory guidance document to provide advice to companies involved in ICO and cryptographic assets on how to meet their legal obligations. The regulator details the prerequisites for cryptocurrency operations to comply with the Australian Companies and ASIC Act, but does not cover regulations enforced by other national agencies. The guidelines state that if the crypto asset is a financial product, the issuer and its company must hold an Australian financial services license, and the exchange that manages such assets also needs to hold a license.

We believe that the game between blockchain project entities and regulation is a hurdle to the development of the industry. This is related to whether the blockchain digital assets can become mainstream assets, and whether the industry can really create new Internet scenarios. The game is a good thing, and the result will eventually lead to a solid path for the industry.

Last week's market review: Chainext CSI 100 rose 3.62%, and the segmented Chinese entertainment social performance was the best. From the perspective of subdivision, entertainment social, basic enhancement, payment transactions, basic chain, and pure currency performance are better than Chainext CSI 100 average, +16.17%, +18.89, +7.22%, 5.54%, +3.74% The Internet of Things & Traceability, Storage & Computing, Commercial Finance and AI sectors underperformed the Chainext CSI 100 average of 2.95%, -0.08%, -1.42%, and -2.53%, respectively.

Risk warning: regulatory policy uncertainty, project technology progress and application landings are not as expected, and cryptocurrency-related risk events occur.

1. Hot Spot Tracking: Kin Foundation Launches Fundraising Challenge SEC, Australian Securities Regulatory Agency Launches ICO Guide

This week, Bitcoin hit a new high of $9000. Canada's social software Kik (Kin Foundation) launched an encrypted crowdfunding campaign to help its lawsuit against the US SEC, and the Australian Securities and Investments Commission (ASIC) has released a new ICO and cryptocurrency guide.

The Kin Foundation launched a cryptocurrency crowdfunding campaign to launch a lawsuit against the US SEC and received industry support. Kik, a Canadian-based social software company, launched an encrypted crowdfunding campaign to fund its possible court litigation against the US Securities and Exchange Commission's 2017 initial public offering (ICO). Kick founder and CEO Ted Livingston and Cooley LLP partner Patrick Gibbs announced on UnChained Podcast on Tuesday that the crowdfunding campaign is starting, hoping that "the lawsuit will eventually enable the SEC to conduct a new Howie test on crypto tokens." (Howey Test) to determine which securities are.” The Howey Test is a standard used by the US Supreme Court in a 1946 SEC v. Howey to determine whether a particular transaction constitutes a securities issue. If it is deemed to be a security, it is subject to the US Securities Act of 1933 and the Securities Exchange Act of 1934. At present, for a large part of the ICO, it is finally recognized as a possibility of securities issuance, thus accepting more stringent supervision. To this end, the Kin Foundation has established a dedicated website, Defend Crypto, to support its supporters for this crowdfunding campaign. Its founder said that the funds it raised will not only support Kik, but many other encryption companies are also facing the possibility of litigation by US regulators. The site offers 19 cryptocurrencies as a donation option, including mainstream cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and XRP, as well as niche augur (REP), DAI and Kik KIN tokens. Although Kik insists that its token KIN is used as currency, the SEC expressed concern that it may be a security, so it will seek enforcement measures against the company. In fact, SEC Chairman Jayk Layton previously said: "I believe that every ICO I see is a kind of securities. I want to re-distinguish between ICO and cryptocurrency. As an ICO for securities issuance, we should It's regulated, just like we regulate securities issuance.” On the new website, Kik said: “After several months of hard work, we have been looking for a reasonable solution. KIN has been unable to find one that will not be serious. Affect the KIN project and all the participants' solutions. Therefore, KIN will respond to the SEC in court to lay the foundation for future innovation."

The lawsuit was supported by project teams such as Circle and Poloniex. Jake Chervinsky, a US law enforcement defense and securities litigation attorney, commented on the incident: This is the most important thing in the 2019 cryptographic securities legal world and is much more important than any SEC guidelines or proposed legislation. The US SEC has always claimed that digital tokens are marketable securities, but can they prove this in court? Respect Kik's aggressive stance.

The Australian Securities and Investments Commission (ASIC) issued a new ICO and cryptocurrency guide on its official website on May 30th. Recently, the Australian Securities and Investments Commission (ASIC) updated its regulatory guidance document (INFO 225) for companies involved in ICO and cryptographic assets (encrypted asset issuers, intermediaries, miners, encrypted trading platforms and wallets and hosting providers, etc.) Provide advice on how to fulfill its legal obligations. The regulator details the prerequisites for cryptocurrency operations to comply with the Australian Companies and ASIC Act, but does not cover regulations enforced by other national agencies. It is worth noting that the guidelines state that if the crypto asset is a financial product, the issuer and the company that processes it must hold an Australian financial services license. The report also states that, at least in some cases, miners will be considered part of the clearing and settlement process: “Miners and transaction processors are part of the financial product token clearing and settlement (CS) process applicable to Australian law.” The regulator also stated that “When determining whether an encrypted asset is a financial product or a financial product, the company and its consultants need to consider all the rights and characteristics of the ICO (regardless of its naming or marketing approach).” The report further describes the management of such assets. Exchanges also need to hold licenses because ASIC's guidelines state that: “Companies that provide cryptographic assets or provide services related to cryptographic assets need to be properly investigated to ensure they comply with all relevant Australian laws.” Finally ASIC also pointed out that the "KYC households and anti-money laundering" specifications also apply to encrypted assets, and Australian consumer law also applies to encrypted assets, including assets issued or managed from abroad.

We believe that the game between blockchain project entities and regulation is a hurdle to the development of the industry. This is related to whether the blockchain digital assets can become mainstream assets, and whether the industry can really create new Internet scenarios. The game is a good thing, and the result will eventually lead to a solid path for the industry.

2. Government-related news: Australian Securities and Investments Commission updates its guidance document on ICO and cryptographic assets

The Australian Securities and Investments Commission updated its guidance document on ICO and cryptographic assets. The Australian Securities and Investments Commission (ASIC) updated its regulatory guidance document (INFO 225) to advise companies involved in ICO and cryptographic assets on how to meet their legal obligations. The document states that companies that provide cryptographic assets or provide services related to cryptographic assets should comply with Australian law.

The G20 member states plan to reach a consensus on 20% of cryptocurrency money laundering and terrorist financing. The G20 major economies plan to reach an agreement by 2021 to deal with cryptocurrency money laundering and funding terrorist organizations. Representatives of various countries are also expected to formally agree on the regulations governing the operation of cryptocurrency exchanges, such as requiring the government to register and manage.

3. Industry chain related dynamics: BTC miners' revenue increased by 6.38%

(The following source website data is updated to June 2)

Last week, BTC added 2.5 million new transactions, a decrease of 4.90% from the previous month; ETH added 6.41 million new transactions, an increase of 8.64% from the previous month. Last week, the average daily income of BTC miners was 17.93 million US dollars, an increase of 6.38% from the previous month; the average daily income of ETH miners was 3.78 million US dollars, an increase of 5.36%.

Last week, the average daily computing power of BTC reached 53.66EH/s, an increase of 2.7% from the previous month; the average daily computing power of ETH network reached 167.9TH/s, an increase of 3.2% from the previous month.

Last week, the difficulty of mining the BTC in the whole network was 7.03T, an increase of 4.9% from the previous month; the next difficulty adjustment date was on June 14, the estimated difficulty value was 7.97T, and the difficulty increased by 6.81%; the average mining difficulty of the ETH whole network last week was 2.11P, an increase of 3.4% from the previous month.

4. Last week's market review: Chainext CSI 100 rose 3.62%, and the segmented Chinese entertainment social performance was the best.

We introduce the professional index product of the token market, the Chainext CSI series index, in which the CSI 100 index [1] represents the overall trend of the market; the CSI 5 index [2] represents the trend of the market oversized currencies; the CSI 21-100 index [3] Represents the trend of small caps in the market. The market fluctuated this week and trading continued to be active. As of last Sunday (June 2), the Chainext CSI 100 index was 941.18, up 3.62% from the previous week, and the total volume of 24 hours on Sunday was 14.731 billion US dollars; among them, the global average price of BTC was 8742.96 US dollars, compared with the previous period. It rose 1.82%; the global average price of ETH was 270.23 US dollars, up 2.05% from the previous period.

From the perspective of subdivision, entertainment social, basic enhancement, payment transactions, basic chain, and pure currency performance are better than Chainext CSI 100 average, +16.17%, +18.89, +7.22%, 5.54%, +3.74% The Internet of Things & Traceability, Storage & Computing, Commercial Finance and AI sectors underperformed the Chainext CSI 100 average of 2.95%, -0.08%, -1.42%, -2.53%.