This article was originally published here.
According to the CEO of Kik, the company has already spent over $5 million in order to engage with the U.S. Securities and Exchange Commission (SEC) due to claims Kik was involved in an unregistered securities sale.
Kik Spent Over $5 MIllion Engaging WIth The SEC
The Kik messaging platform that was founded by Ted Livingston in 2010 was able to raise $98 million in an Initial Coin Offering (ICO) back in 2017. At that time, ICOs were gathering several million dollars in funds from the crypto community. The intention behind Kik was to support the growth of its ecosystem.
However, there are some issues that have raised concerns. The U.S. Securities and Exchange Commission indicated that the sale could have violated U.S. Securities laws. Thus, the SEC staff would decide to take enforcement action against the firm.
During a conversation with CoinDesk at Token Summit in New York, Livingston explained that the regulator and the firm have been discussing these issues and talking about it since 2017. According to Livingston, the firm has already spent over $5 million and time to deal with this regulator and be able to solve these issues.
Livingston commented about that:
“In the last month alone, over a million people earned kin from 40 different apps, from 40 different companies. Over a quarter million people used kin, making it the most-used cryptocurrency in the world, and they are not even willing to say that’s not a security.”
He mentioned that the SEC has to provide greater regulatory clarity and provide clear guidance. There are several jurisdictions that are starting to impose better regulations and rules for companies to operate in the crypto market and blockchain space. Livingston explained that he wants to work with the regulatory agency complying with their rules and helping innovation move forward.
At the same time, there are other companies that are facing problems with regulators, something that is not allowing the space to keep moving forward. Meanwhile, countries such as Switzerland or Malta have already created regulations for firms to settle their operations in these countries.