United

2024

DeFi

Foundation

<p>dYdX, a decentralized exchange, after the community referendum with over 90% support, has announced its decision to operate from the Cayman Islands partially. However, this move is targeted to reduce the probable legal risks because the United States security regulators have been concentrating on decentralized finance (DeFi) protocols.&nbsp;</p>
<p>Despite dYdX not having any operations within the US, the platform is proactively reacting to potential actions by the US authorities, as they have a precedent of going after such projects that are based outside their jurisdiction.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">🗳️ DOT Transition to a Cayman Islands Foundation Company<br><br>The dYdX community has voted in support of the transition of the dYdX Operations Trust to a Cayman Islands Foundation Company 🤝 <a href="https://t.co/Hhd2NZPqbI" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/Hhd2NZPqbI</a></p>— dYdX Foundation 🦔 (@dydxfoundation) <a href="https://twitter.com/dydxfoundation/status/1774755908486095022?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">April 1, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<h2 class="wp-block-heading" id="community-referendum-and-regulatory-framework">Community referendum and regulatory framework</h2>
<p>The restructuring includes moving the dYdX Operating Trust (DOT) to a freshly formed Cayman Islands foundation company known as the dYdX Foundation. This action is a reaction to the growing attention from the U.S. securities regulators, particularly the Securities and Exchange Commission (SEC), which has stepped up the supervision of the DeFi protocols. The Cayman Islands were opted for because of their regulatory treatment towards digital assets and because they provided a legal structure to shield the personal assets of management of foundation companies.</p>
<h2 class="wp-block-heading" id="recent-regulatory-actions">Recent regulatory actions</h2>
<p>The context of dYdX relocation includes recent U.S. authorities’ actions towards other DeFi projects. For example, in the case of SushiSwap, the SEC released a subpoena on it and one of the leading contributors, which implies possible enforcement actions. Furthermore, DeFi organization ShapeShift has agreed to pay a lawsuit by the SEC by transferring $275,000. These cases are the manifestation of the increasing attention of U.S. regulators toward DeFi platforms and highlight the legal complexities that entities in the crypto sector have to navigate.</p>
<p>Through relocation to the Cayman Islands, dYdX wants to utilize the jurisdiction’s crypto-friendly laws, as well as to save contributors from legal risks. This strategic choice is the attempt of the platform to survive in the multi-legal environment and guarantee its long-term operation stability.</p>

Crypto platform dYdX chooses Cayman Islands for operations as US tightens DeFi oversight

목차

Cryptopolitan_News

2024년 4월 2일에 게재된 다른 기사

Tether Bolsters Bitcoin Reserves with Massive Purchase of 8,888.88 BTC

FixedFloat Exchange Hit by Hackers, Loses $3M to Ethereum, Tron

BOME Price Revives Uptrend With 65% Upside Potential

Bitcoin Price Plummets, Silk Road BTC Movement Shakes Market

Singapore Expands Crypto Regulation to Enhance Oversight

Bitfarms Acquires 87,796 Miners as Halving Race Deepens

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!