Telegram set to delay crypto launch
The government is apparently unhappy with Telegram’s new digital currency
The Securities and Exchange Commission (SEC) has decided that Telegram doesn’t need to introduce a new digital currency. The messaging platform raised over $1.7 billion for its new TON cryptocurrency last year and, just ahead of its anticipated launch, the regulatory body stepped in and decided to bring the project to a halt. Now, Telegram will have to consider how it wants to proceed.
The SEC asserts that the company never registered the offering with the commission, calling the fundraising effort illegal. Telegram raised over $425 million from investors in the US and the move by the regulator shocked the company. According to a statement, Telegram officials asserted, “We were surprised and disappointed that the SEC chose to file the lawsuit under these circumstances.”
Due to the sudden move by the SEC, Telegram’s TON Board added in a separate statement, “Due to the increased level of regulatory uncertainty we take a break to analyze new information and adapt our policies.
“TON Board will be with you again once we have more clarity on the legal status of the TON and Gram as well as permitted type of analysis that may be published on them.
“We are looking forward to sharing more information with you as soon as it’s possible.”
If Telegram has, in fact, been trying to get involvement from the SEC for the past year and a half, the commission’s decision seems to be nothing more than a veiled attempt at damaging the company and the crypto industry as a whole. If any government agency needs 18 months to reach a decision, it is not only inefficient, but lacking of standard protocols to ensure that it operates in an ethical, above-board manner.