On May 21, Bitfinex and their partner Ethfinex launched Tokenex, a new Initial Exchange Offering (IEO) platform, and have reportedly decided to forgo regulatory approval, according to a report from The Block.
Per the report, Ethfinex co-founder Will Harborne said that the regulatory environment simply isn’t ready to regulate their new IEO platform, adding:
“There is nobody who is prepared or has set down true enough rules to regulate us.”
The Bitfinex crypto exchange and its sister exchange Ethfinex are under massive public scrutiny following the ongoing case brought against Bitfinex by the New York Attorney General.
As the exchange is still being closely investigated for fraud, they decided to forgo formal regulatory approval for the IEO but are still paying close attention to regulatory standards.
Explaining the situation, Harborne said:
“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.”
Moreover, Harborne admitted that their current legal situation with US regulators is especially fragile, and that the exchanges have to assume that regulators will be watching their every move. Therefore, he said they’re taking actions to make sure they do everything up to standard and are protecting their customers as best they can.
The first Tokenex token offering is slated for June 13, with two tokens being planned to launch each month following.
The first token is dubbed “Unus Sed Leo” and is launching on both the Ethereum and EOS blockchain protocols.
Do you trust Bitfinex and Ethfinex to provide safe and reliable services with their Tokenex platform? Let us know what you think in the comment section below.
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