Bitcoin and Ethereum did not have to comply with regulation In Hong Kong FinTech Week SFC regulator mentioned that new projects need to comply with regulations, and explained the impact of the application of security law to the cryptocurrency space.
Any project has to promise that its token will increase in price. Furthermore, given that the appreciation is usually obtained through the work of developers, by definition, an asset that is being sold is a security. Therefore, securities law is then implicated and now you can’t sell a utility token as it’s not a utility token, it’s a tokenized security.
Ethereum’s first-mover advantage. Ethereum’s developers had the opportunity to sell their cryptocurrency without complying with securities regulation because it operated in a still largely unregulated industry.
Competing projects, on the other hand, cannot simply claim that what they are selling is a utility token and avoid registering it as a security.
Telegram recently asked the New York Southern District Court to throw out accusations by United States regulators accusing its Grams tokens of being securities.
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