is it legal to burn etn coins (in the UK)?
Yes.
20 characters for post
I think is not legal to do it
There is no legislation against it. Granted, there is very little legislation for crypto in general, so going to the level of coin burns on a blockchain is not something that is on the docket of things to worry about. If you find one, feel free to post here and I will stand corrected.
With that said, the coin burn itself is not illegal but the purpose of the burn could be. For instance, if they state a coin burn is being done for the sole purpose of increasing price, that would be considered a form of price manipulation which could bring trouble for regulation efforts…but still not illegal.
I agree not sure about a law but… for sure “could bring trouble for regulation efforts”… as far as I remember RE told “it will not happen with ETN”
1 Like
I also remember RE saying it but I don’t find it.
Is this sufficient to say that coin burning is illegal?
"
MAR 1.6.4
E
01/04/2013
Descriptions of behaviour that amount to market abuse (manipulating transactions): price positioning:
…
(4) an abusive squeeze - that is, a situation in which a person:
(a) has a significant influence over the supply of, or demand for, or delivery mechanisms for a qualifying investment or related investment or the underlying product of a derivative contract;
"
source:
https://www.handbook.fca.org.uk/handbook/MAR/1/6.html?date=2016-03-07
I guess coin burning is an “abusive squeeze”
but I’m not sure is etn a
“qualifying investment or related investment or the underlying product of a derivative contract”.
2 Likes
I’m glad ETN won’t do a coin burn, I think it’s wise to avoid. Imo in the future it’ll be illegal because it’ll be seen as clear market manipulation.
2 Likes
You are correct Sir. Token/Coin Burns are not illegal at all. Doing Burns doesn’t mean the token or coin will increase in value. If I’m missing something here, please tell me.
Ditto. Well said. Good Info.
Just gotta put my 2 cents in: with recent regulations instilled by the FatF and the redefined term of assets. Even tho not directly called coin burning. But the purpose of coin burning is illegal. Define the term coin burning. By definition on majority sites, is to burn coins as to raise prices by lowering the amount of coins In circulation. So yes it is to manipulate the price of the coin and yes crypto has been added to the list of what assets are. Crypto is a digital asset now…FatF is going after crypto cause it’s making to many people rich… it has nothing to do with terrorism… and the world follows the fatf regulations… this is bull
1 Like
One way around a coin burn and the legality of it would be to add coins to existing accounts held on the official wallet.A kind of Christmas present for the customers.
Another idea would be to offer the use of the block chain to WWF and the like, a way for them to move money to places like Africa for 0 fee.
Seems to me this crypto has gone down the road of being ethical so moving closer too that in real world applications would be the best way forward for the coins uptake and value
