Does a cryptocurrency trading platform not require licensing if it does not offer trade of securities?
<p>The article <a href="https://www.sec.gov/news/press-release/2018-258" rel="nofollow noreferrer">SEC Charges EtherDelta Founder With Operating an Unregistered Exchange</a> states that:</p>
<blockquote>
<p>Over an 18-month period, EtherDelta's users executed more than 3.6 million orders for ERC20 tokens, including tokens that are securities under the federal securities laws. Almost all of the orders placed through EtherDelta's platform were traded after the Commission issued its 2017 DAO Report, which concluded that certain digital assets, such as DAO tokens, were securities and that platforms that offered trading of these digital asset securities would be subject to the SEC's requirement that exchanges register or operate pursuant to an exemption. EtherDelta offered trading of various digital asset securities and failed to register as an exchange or operate pursuant to an exemption.</p>
</blockquote>
<p>To me, this paragraph seems to imply that a cryptocurrency-to-cryptocurrency trading platform does not require registration if it does not allow trade of securities.</p>
<p>Is this true?</p>

<h2>Correct</h2>
<p>If you don’t trade securities (or you fall into an exemption) you don’t need a security license. In this particular <a href="https://www.sec.gov/news/press-release/2017-131" rel="nofollow noreferrer">case</a>, what was being offered were <a href="https://www.fdic.gov/regulations/laws/rules/8000-6200.html" rel="nofollow noreferrer">securities</a> and there was no valid exemption.</p>
<blockquote>
<p> The term &quot;security&quot; means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a &quot;security&quot;, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.</p>
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<p>It’s just like if you don’t drive a car, you don’t need a driver’s license.</p>

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