Ethfinex co-founder says no current plans to seek regulator approval for new IEO platform

With questions surrounding crypto regulations, Ethfinex co-founder Will Harborne said as of now, regulatory conversations have not advanced enough for the exchange to seek regulator approval for its new Initial Exchange Offering platform, Tokenix.

“I think it wouldn't be realistic to do that,” he said. “There is nobody who is prepared or has set down true enough rules to regulate us.”

Bitfinex has long partnered with Ethfinex, and the relationship has produced the latest offering in Tokenix. The first token is slated for announcement in the coming days with two tokens planned for launch each month.

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Despite not seeking formal approval for the IEO, Harborne said the exchange is keeping an eye on regulators’ standards amid the ongoing Bitfinex case brought by the New York Attorney General.

“I think we have to acknowledge that we are under huge scrutiny, very public scrutiny, and it's inevitable that any IEO we are running would also be looked at under that same light,” he said.

The companies are engaging in self-regulation for the Tokinex platform, according to Harborne.

“Even at the moment there's no clear regulation for legal activity, we have to assume with everything we're doing that people retroactively will look at these activities and say ‘Did they protect their customers? Did they do everything up to standard?’” he said. “And therefore, we're taking actions already to make sure that we did.”

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.

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