Yesterday Bittrex announced that they will be delisting Safex from their exchange on 15/12/2017. This comes as a surprise both to the community and the Safex development team.
Today, Daniel Dabek published a legal paper on Why Safex is not a Security.
Legal breakdown of Safex as a “security”
1 – The Safe Exchange Coin is NOT a security under the legal definition of any common type of security or within the broader definition of “investment contract” that the Supreme Court articulated in the Howey Test
2 – A sale of the Safe Exchange Coin is not an investment contract because a purchase of Safex does not constitute as an investment in a common enterprise (shares in a legally registered business entity) and the users of Safex must not expect to receive profits from their Safex holdings based on any efforts of the sellers.
3 – Therefore, it is concluded that list Safex on an exchange does not, at the time of this article, constitute effecting transactions in securities for the counts of others or for itself under the Securities Exchange Act.
What’s the next step?
Daniel will continue to fight the case with Bittrex to keep Safex listed on the exchange. He’s also in discussions with further exchanges to get Safex listed on their exchanges too.
Overall the community is optimistic. I’ve seen many positive comments on Twitter, Facebook, and blog comments from community members with a positive attitude and outlook on the situation.
Historically there has been many coins that have continued to have a productive and fruitful development even after getting delisted from Bittrex.
This situation will NOT stop Safex from continuing their path to becoming the number one crypto-commerce platform in the world. I for one am personally not worried.
Just because your regular supermarket has stopped stocking your favourite cereal, it doesn’t mean you can’t get it anywhere else!
In the short term, if Bittrex reject Daniel’s sound and logical argument regarding Safex, there are still other exchanges that deal with Safex. It might be a wise idea to get registered on these exchanges as a backup plan.