Date : February 16th 2018
By Annemieke Dirkes, Blockchain Projects BV
Currently, the expansion of the tradability of BTS against fiat thanks to Lykke is among our major focus points. We will only announce results and not "might be" or "ongoing" or "we hope". It is either there or there is nothing to talk about and we waste everyone's time. However, we want you to have an insight in these processes.
Let ‘s start with saying to the unaware reader, who visits this message: BTS is of the opinion it is not a security or a financial product. The BitShares Blockchain is decentralized and has recently realized it needs to improve on explaining who and what she is by voting a Global Spokesperson. The process of eliminating incorrect or unclear spread information on the internet is taking shape and the Community takes steps to be the first among its peers to go for a no-action letter from the SEC with the approval of the corresponding worker for funding this matter.
When we start contacts with exchanges, or for that matter any other party, the very first thing that steps in is their legal council team these days. This used to be a situation where at first technically orientated people went for realisation of their creative ideas. It still is, but only after they are authorized to move on, counselled by legal people. Every step of the way. The rules have significantly changed. We need the Community to be aware of that. First thing is usually a personal NDA that puts you as a natural person in a position where one can hardly say anything of the ongoing communications until mutual announcement is approved. Announcements that involve the BitShares Blockchain Foundation always have a written confirmation of the other party before releasing. That alone goes back and forth with legal council before our contacts commit. Because we never violate that by leaking, we created a lot of trust. You will not see us blog unreviewed content anywhere. That helps a lot. We build more and more towards an image of being a no-nonsense, credible, professional entity to communicate with on behalf of the BitShares Blockchain. In our professional careers we also try to be very selective and be aware of potentially undesirable contacts to sustain that.
We thank the Community for their votes on the Worker with regard to legal council. We can only say that the PaulHastings initiative towards the legal council of Bittrex Inc. resulted in a clear answer from them as to what their needs are in a legal opinion from PaulHastings. We have Mr. Hernand to thank for that, although we had not yet hired them officially. When the approval was there this week, we went to work right away as matters are pressing. We asked Mr. Morgan's assistance in getting through to the legal council of Poloniex Inc., as they might inform a technical person at Poloniex, so we can offer getting the allegedly wallet issue sorted. Fortunately everything is working again now.
Following up on some remarks now. With respect to a second council, getting a second lawyer in, you usually only do when the knowledge level is not wide enough to cover the case, you have more than one party involved at your side or you have a major disagreement with your council. The rest is an insult at the level we are dealing with - and expensive. We did not change the Worker as we did not see any benefit just now for the Community. Most hours will go to lawyers convincing each other instead of the other side. Read the curriculum of the lawyers involved at their website please and have an informed opinion of the people involved.
- https://www.paulhastings.com/professionals/details/nicolasmorgan
- https://www.paulhastings.com/professionals/details/davidhernand
We value to state none of the persons involved at BitShares Blockchain Foundation or their respective businesses have either in the past or current, had an agreement with this law firm. We have the possibility to dissolve the assignment any time. Be aware that both in this case and in the Lykke case, "oldfashioned" legal entities must sign agreements to get things done. In the past that has been the Community's Achilles heel, as nobody was ever home when it really mattered. With the unique solution the Community now has with the BitShares Blockchain Foundation we got that solved. To be frank, it is our head on the chopping block, and Dutch law is quite straightforward in this. We therefore go by the book when it comes to NDA, procedures and agreements. It goes without explanation that is also the reason why we are so specific with what we do and don't do.
Recently, we have put a warning at the top of some of the documentation websites. We have also sent the owner of Bitshares.org a request in the past to transfer the website to the Foundation as the content is already Community driven. Stan Larimer has after initial willingness, refused that. We therefore go towards the future with www.bitshares.foundation, how.bitshares.works, and www.bitshares.legal. The first one will very shortly have a brief introduction as we need that really soon.
The reason is easy, the content of www.bitshares.org gets us in severe trouble constantly when we are trying to expand with new listings and trying to keep current ones. Do not underestimate that. We are sitting ducks if the community does not get their official information side cleaned up. We proposed the way forward for this in a Worker. The split between technical information on the workings is a vital one. The legal teams worldwide follow the same working method for analysis of BTS and BitShares Blockchain. Get this: usually the start of the discussion is they think it is the same thing, that BTS is the Blockchain itself. They also usually do not get the fact that other assets are on the BitShares Blockchain without being BTS. You all might think that sort of view is ridiculous, it is what it is. Even the technical wording will be point of attention.
As to the www.BitShares.org site, which frankly is bringing us more and more trouble each day, we will put in a separate Worker to give the Community a voice through voting. Legal council strongly advises us to take the content offline this very second. Consequences are that severe. The domain is not owned by the Community but the content is. As we feel this is important to just do this, we as usual give it to the BTS holders to decide. A subsequent worker to this matter is in the usual review iterations already and will be published in the very near future.
As to suggestions to wait until we might get a subpoena from the SEC (let's not stir up things where you might get a no) there never will be one, it is an impossibility in itself. BitShares Blockchain or BTS is no legal entity in itself to subpoena. Based alone on that very fact, third parties might be ordered by the SEC to delist BTS and effectively isolate (or kill off, whatever you want) trade. Next step is a shutdown of any exchange not doing that. This is the current procedure everywhere with deadlines in place. Comply or die. At that stage, the Community will be in a weaker position to do anything. First our funding will be compromised. What can you do then? Someone opening a BTC account and await donations from private individuals? Where is the control of the Community in that? Provided you get funding in a single day, it will take a year at least and by then everyone will have moved on. Getting back to where we are now is a doubtful thing. From experience this week we know that in Europe with the changes in law per January 1st 2018, similar outings as a no-action letter are extremely hard to come by. Fear and massive demand on SEC type of regulators is a subjective impression we have. But not getting one because no one gets one; being fully transparent and understood is just as important.
On the accounting we report details, also of workers that we are not involved in, in our professional capacity. Of course when funding is remaining and the work done, it goes back into the Working Capital of the Blockchain. Everyone can see that. If you overspend, that is a pity. You either go back with a Worker or do what Blockchain Projects BV did with Blockchain Academy, you pay the rest yourself. Being a sponsor in a way. The BitShares Blockchain Foundation only handles the funds that it offers escrow functionality to and are voted for, it is not an address to come to, when your funding falls short. That is where the normal voting process comes into place. Control with the Community.
The last thing we address is the Worker we initiated on Chinese translations. The Chinese part of our Community is very active. We like to accommodate that in our outings and do not want misunderstandings here. Of course we are always happy if someone would want to do things in this area. We can't however have just anyone doing that under our flag because of the legal repercussions to the Foundation if the wording is somewhat different in its details. We ask for understanding in that and are very happy and grateful we now have this possibility.
Good news is that the Chinese part of our Community is working hard to realize a weekend for Graphene based development in Shanghai. I think it is safe to say we are all very, very appreciative of their efforts! Due to conflicting dates with other events they are now heading for early May. Keep an eye out for their promotion and if you are a first timer, get a visa in time to join.
We hope to have given some insight into some processes. These are exciting times when the world is adjusting to the new realities of Blockchains. Thank you all for your continued efforts and support.
On the promotion side we were given the opportunity on February 21st at the Geneva day of the Blockchain & Bitcoin conferences, to step up on stage and introduce the BitShares Blockchain and BTS. To a large room, for almost 100% unaware of the BitShares Blockchain or BTS, we explained the unique governance by voting and some hard facts of the Bitshares Blockchain itself. It must have been effective as many people jumped on Fabian Schuh and myself afterwards with questions. Noticeable is that many struggled to get answers in their situations on scalability and speed, users and developers on a variety of other blockchains.
Note: DEEX sponsored the promotional visit for the BitShares Blockchain Foundation. DEEX also offered to sponsor the Russian translations of our reporting from now on.
BitShares Blockchain Foundation
Zutphenseweg 6
7418 AJ Deventer
The Netherlands
Registration: KVK-66190169
http://bitshares.foundation
Official Public Face and sole Spokesperson of the BitShares Blockchain {more}