Blockchain Foundry, the developers behind the Syscoin blockchain have announced that the Syscoin 3.0 protocol release will be pushed back to April 30th, instead of March 31st. With the new protocol introducing a unique level of complexity and functionality, the team says it is necessary to undertake a thorough compliance analysis prior to release. This analysis will ensure that Syscoin remains actively listed and traded at all exchanges.
Over the past several months, Blockchain Foundry reported having been working with its legal team to define and strengthen their view that Syscoin is not a security. Given the recent SEC update, Blockchain Foundry says, “this analysis is more important than ever, especially as some trading platforms have been delisting tokens that have not made an effort to take compliance seriously.”
On March 7h, the SEC released its “Statement on Potentially Unlawful Online Platforms for Trading Digital Assets”. In reference to online cryptocurrency exchanges, part of the statement reads: “A number of these platforms provide a mechanism for trading assets that meet the definition of a ‘security’ under the federal securities laws”. This has important implications for many blockchain companies such as Blockchain Foundry and cryptocurrency projects like Syscoin, who strive to meet rapidly changing compliance standards.
The Blockchain Foundry team stated:
“Our original target of March 31st is no longer valid because it is of paramount importance that we remain compliant and that we do things properly at this juncture if we are going to remain a credible player in the space. We understand that we are making short-term sacrifices in order to endure the long haul and compliance is the only way to do that.”
“The new release date give us more time to perform additional security and performance testing while the analysis is being completed. We thank our amazing community for its support and will continue to provide updates as they are available for the Syscoin 3.0 release.”