When/how can we list on US exchanges?

This is a common question from community, especially in light of recent announcement from gate.io and Bittrex about delisting certain tokens from their US exchange, as well as Binance’s recent re-org in terms of how to serve their US customers in a different legal entity.

First of all, our listing on gate.io and Bittrex are entirely safe and NOT impacted by these announcements. We have never been available to US customer, and if you visit gate.io or Bittrex you will not even find our token let alone trade them. We are tradable only on gate.io international and Bittrex International (which is Malta base and compliant with Malta VFA laws). So no worries there.

Secondly, we have never marketed or sold to any US investors (individual or institutional) during our initial funding rounds during early part of 2018. Our SAFT and public sale terms and condition have always clear text about excluding US, China, Singapore, and Australian citizens. And we have always clear text about the utility token nature of NKN, as well as never promised passive income, financial gain, ownership, or voting rights of any kind. We have an excellent legal team both in US and Singapore advising us to be fully compliant from the very beginning.

For US, we need to prepare a “utility memo” (legal opinion) according to SEC regulations. One good reference is Coinbase’s Digital Asset Framework, which refers to Coinbase’s Securities Law Framework , which has not been updates since December 2016. Coinbase also provides a spreadsheet to assist in the evaluation which scores the risk of being a security token. Things have changed a bit since December 2016, but SEC’s recent enforcement actions are still primarily based on Howey Test (Kik/Kin and Munchee).

Since we started our project in 2018, we have hired one of the best legal firms in this space in US. We have done long term planning to follow the overall legal guideline to reach eventual utility token status. Mainnet is one aspect, but attracting real adoption and usage on top of our mainnet is even more crucial. That’s why we are launching two flagship products (nCDN and PubSub), as well as working hard on customer trials and eventual commercial agreements. Brave/BAT is a good benchmark for listing in US.

It is a journey, and we are on the right track to achieve our goal.

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