Minexcoin Plays Safe With the SEC
As we mentioned several weeks ago, our team is working on the applying for a greater number of world crypto-exchanges. Most of them require a conclusion that coin planning to be list isn’t a security, so we asked lawyers to make an analysis what exactly MNX is. Juscutum Attorneys Association answered that “…there is a low risk that the Minexcoin will fall under the definition of securities according to the U.S. federal and state laws”. But, one thing at a time.
MNX team received a Legal Opinion for the Minexcoin in the run-up to the listing on popular exchanges. Expert verdict: MNX is not a security!
As we mentioned several weeks ago, our team is working on the applying for a greater number of world crypto-exchanges. Most of them require a conclusion that coin planning to be list isn’t a security, so we asked lawyers to make an analysis what exactly MNX is. Juscutum Attorneys Association answered that “…there is a low risk that the Minexcoin will fall under the definition of securities according to the U.S. federal and state laws”. But, one thing at a time.
First, the SEC sued the Howey company, but the case was blocked by an appeal and went to the Fifth Circuit Court of Appeals where it was affirmed. Injunction over Howey’s contracts was removed. Finally, the US Supreme Court then granted certiorari (a writ seeking judicial review) that Howey’s contracts were investment contracts and must be regulated as one. The case resulted in a test, known as the Howey test, to determine whether an instrument qualifies as an “investment contract”. It’s still used today to answer what a security is and isn’t.
Under the Howey Test, a transaction is an investment contract (security) if:
- It is an investment of money
- There is an expectation of profits from the investment
- The investment of money is in a common enterprise
- Any profit comes from the efforts of a promoter or third party.
You may have questions why are we speaking about this history details in our article. The main case is that the SEC doesn’t have any documented policies about cryptocurrencies and regulates its work, based on case law, which Howey test is. If the company comes under the heading of security, all the SEC requires applying to company’s work with clients. And it depends not only on the opportunity to work on the US market, but even to trade on the stock exchanges.
To make a point clear and to make sure once again that MNX does not contradict the rules of the SEC we decided to get a Legal opinion, in which professional lawyers used the Howey test to verify Minexcoin. The good news is that we didn’t pass the test, which means that Minexcoin doesn’t fall under the definition of “Security”. Accordingly, the MNX does not contradict the requirement of the SEC and can openly trade, both in the US territory and by USA residents in other countries. We present a full Legal opinion text made by Juscutum Attorneys Association, a legal engineering company based in Kyiv.
You can also find this legal opinion at Minexcoin website.
As you can see from this text, we’re working on the last barriers that separate MNX project from big global exchanges listing. Hope, we’ll make you happy with such news in a short time.
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