Animoca Brands Shifts Focus From U.S. After SEC Labels SAND Token A Security

    Crypto News: Animoca Brands, a Hong Kong-based blockchain unicorn, has announced a strategic shift towards global markets after the crypto market witnessed a number of lawsuits from the Securities and Exchange Commission (SEC). The SEC recently labeled Animoca’s SAND cryptocurrency as an unregistered security while targeting exchanges such as Binance and Coinbase Global.

    Animoca Brands Diversifies Beyond US

    According to Animoca Brands’ co-founder and chairman, Yat Siu, the company operates globally and does not solely focus on a single territory. Siu emphasized that the SEC’s actions would not have a significant impact on Animoca Brands’ presence in broader markets where the Sand token is widely accepted and available. This includes progressive jurisdictions such as Hong Kong and Japan.

    Read More: US DOJ Asked To Investigate Binance On False Statements To Congress

    In response to the increasing regulatory scrutiny and what Siu referrs to as a “blockchain-hostile” approach in the United States, Animoca Brands has proactively initiated steps to prioritize other markets. The company aims to mitigate potential setbacks resulting from the SEC’s actions by expanding its operations and strengthening its presence in regions beyond the US.

    Potential Delisting For SAND Token

    While Coinbase remains resolute on not removing the cryptocurrencies highlighted on the SEC complaint, other exchanges are carefully examining the SEC’s analysis to determine their course of action. Robinhood, a propular US brokerage firm, is actively reviewing the SEC’s report to assess whether any action — such as delisting tokens from their platform — is necessary.

    Sabastien Borget, co-founder and COO of The Sandbox — a virtual world built on blockchain technology and a star offering of Animoca’s wide range of products — responded to the SEC’s claims on Wednesday. Borget stated that the SEC’s characterization of their token as a security did not affect the company’s day-to-day business operations and the company didn’t “necessarily agree” with the SEC’s classification of tokens.

    As part of its global diversification, recent reports suggest that Animoca is making significant investments in the Middle East and other parts of the world to tap into the growing opportunities. In the wake of this news, the price of SAND is currently exchanging hands at $0.49 which represents a drop of 0.57% over the previous day.

    Also Read: Circle Ropes In Former CFTC Chair To Push For Regulatory Clarity On Crypto

    Mooky Presale


    CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

    The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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