is it legal to burn etn coins (in the UK)?
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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”
I also remember RE saying it but I don’t find it.
Is this sufficient to say that coin burning is illegal?
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;
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”.
Whether it is specifically defined as illegal or just sat in the grey area of legality… it would not be viewed well by the FCA and other legal authorities and thus will never happen in ETN.
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.
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.