OKCoin is adding Tron to its crypto exchange today. Not to be confused with OKEx, which is a futures platform founded by the same people, OKCoin primarily focuses on traditional swaps and allows for bank deposits.
Importantly, OKCoin serves US customers while OKEx does not.
Tron is Not a Security
CCN spoke to Tim Byun, CEO of OKCoin, about the decision to list Tron. CCN wonders what considerations OKCoin makes when listing new tokens. First of all, Byun said, regulations are very important. OKCoin does not list tokens considered to be securities.
First thing we do, we have to abide by regulations in the US. We are a money service business. We’re operating out of the US. We’re serving US customers. So from a regulatory perspective, that’s the clearest step one to take, so we spend a lot of effort on our compliance team and our legal team to ensure that whatever we list is not a security.
We do not have an ATS or a broker-dealer license, so we cannot facilitate the trading of securities. We made sure that TRX is used today as a utility. That there is a use case, that it passes the Howey Test, kind of laid out by the prior rulings of an SEC case, that’s the best we have.
Tron Team Impressed OKCoin
Compared to other cryptocurrency exchanges, OKCoin is impressively cautious in their listings. Lacking status as a security is not enough. There are thousands of blockchains, after all. Byun says that Tron passes another important test for OKCoin: it’s exciting and in demand.
Having passed that first hurdle, then we talk about what are some exciting things out there that we can list.