The US Securities and Exchange Commission has released a Welsh notice for NFT game project CyberCon, revealing its latest regulatory investigation into the entity.
“The SEC's Division of Enforcement has been very vocal that you can't have a token (ERC-20) with a blockchain game without registering it as a security,” the project said in a statement. press release Posted by X on Monday.
The Wales Notice informs recipients that the regulator is considering taking enforcement action based on findings from preliminary investigations. Once filed, the notice is typically given 30 days to respond before the SEC decides whether to pursue or not.
A full investigation and subsequent indictments against Cyber Cong could present “major implications” for the blockchain gaming industry, he said, “defending this position for the wider space.”
In particular, projects that combine NFTs with utility tokens may be affected. CyberKingz, which operates without venture funding or significant treasury stock, said it plans to challenge the announcement.
“We've been suffering in silence for the past two years since our first contact with the SEC,” CyberKingz said, citing the regulator's “complete lack of understanding of blockchain technologies” which has “resulted in unfair accusations and lawsuits.” Accuracy of information.”
CyberKongz and the SEC did not immediately respond. DecryptFeedback questions.
The SEC's concern is focused on the NFT project at Genesis Kong in April 2021. Contract migrationWhich regulators interpret as a token sale, according to the company's statement. CyberKingz notes that this is merely a technical improvement rather than a security sacrifice.
“What hope do we currently have for a clear regulatory path forward if they can't distinguish between prime sales and contract migration?” The project said.
As a gaming platform, Cyber Kongz offers users features such as randomly generated 2D and 3D avatar NFTs for use in “play & collect” games. Ronin blockchain.
The announcement for Cyber Kong follows the same regulatory controls that were done on the NFT platform Immutable In November, which token sale also came into question.
“You know you're part of a revolution when you start a migration,” says Gihoz Zirlin, founder of Axis Infinity. Giving feedback “I stand with the Cyber Congs” on X.
Despite the vision, the project's floor price is at 8.2 ETH ($32,800), up 14.4% in 24 hours, according to CoinGecko. Data It shows.
Edited by Sebastian Sinclair
Daily Debrief Newspaper
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