OKCoin refuses the use of idle client funds

OKCoin makes an announcement about its policy regarding properly safeguarding idle client funds
28 August 2017   630

About a week ago, it was reported that two of China’s ‘three exchanges’, Huobi and OKCoin, have reportedly dipped into 1 billion yuan ($150 million) of idle users’ funds to invest into risky, high-yielding financial products.

Now, OKCoin, an exchange platform occupying the sixth position in the list of all digital currency exchanges on coinhills.com, dismisses such claims.

Recently there have been rumors and false allegations regarding OKCoin, and its affiliates, in their use of idle client funds. We would like to assure all parties, and especially our customers, that we have a strict policy of placing idle client funds into bank-backed low risk products for safe-keeping.
 

OKCoin team

The company continues arguing that they consider the safety and integrity of the client funds as their "most important responsibility". Thus, OKCoin refutes any claims to the contrary as false.

It's also noteworthy, that at the time of writing, Huobi has not issued an official statement about the allegations of diversion of customer funds. 

Wyoming Passed Bill Exempting Utility Tokens from Securities Laws

The Wyoming House of Representatives has unanimously approved a bill exempting utility tokens from securities laws  
20 February 2018   82

On Monday, House Bill (HB) 70 passed the House 60 to 0 and will now head to the Senate. The bill exempts utility tokens from securities laws. This will attracts ICO’s launches to the state and will make the state a favorable environment for blockchain startups.

According to the bill, the utility token must meet three conditions:

  1. The token’s issuer must not market it as an investment;

  2. The token must be exchangeable for goods and services, for example, startups must have a working product or service at the time the tokens are issued;

  3. The token’s issuer must not actively make efforts to create a secondary market for the token by entering into a repurchase agreement or agreeing to locate buyers for the token.

It is important to note that there are four more cryptocurrency and blockchain-related bills currently moving through the Wyoming legislature.

HB 19 passed the House of Representatives on Monday and is now awaiting introduction in the Senate. The bill exempts cryptocurrency from the state’s money transmitter act.

HB 101 has passed its second reading in the House and, if it passes its final hearing, will then go to the Senate. This bill will allow companies to create and use blockchains for the purpose of storing records and conducting inter-office communication.

HB 126 has just passed its second reading in the House. It will allow the creation of series LLCs.

Senate File (SF) 111 passed a vote to introduce on Friday and is now headed to a committee hearing. This bill will exempt cryptocurrency assets from state property taxes.