After Uniswap and Ripple, SEC takes action against NFT project

After Uniswap, OpenSea, Ripple and others, now CyberKongz has also received a row and a warning from the SEC. Meanwhile, the FCA in Britain is putting pressure on memecoins.

The U.S. Securities and Exchange Commission (SEC) has issued a Wells Notice to the NFT gaming project CyberKongz, as the team announced on Dec. 16. With this, the securities regulator continues its regulatory pressure on the crypto sector, even after announcing the upcoming departure of its head, Gary Gensler, who is known for his tough stance on the crypto sector.

A Wells Notice informs the recipient that the SEC is considering taking action against them. In the crypto sector, Consensys, Immutable, as well as Uniswap and OpenSea have already received such a notice this year. In addition, the SEC has been battling Ripple Labs for ages. For Coinbase, such a warning even led to a lawsuit last year. A suit against CyberKongz would now "significant impact" may have for the crypto-gaming industry, as the team pointed out in their statement. "The SEC's enforcement division has confronted us with very disturbing rhetoric that one cannot have a token (ERC-20) in conjunction with a blockchain play without registering it as a security", it was further explained.

Regulatory authorities on this side of the Atlantic have also taken action against the crypto sector. For example, the United Kingdom's Financial Conduct Authority (FCA) recently warned against the Solana-based project "Retardio". The token would potentially offer financial services without the approval of the regulatory authority, the FCA said. The authority reminded crypto users to only do business with FCA-approved companies. In turn, the memecoin and NFT project responded to the FCA's warning by stating that it "issued a warning against the British financial regulator".