The Securities and Exchange Commission (SEC) is fighting the ICO fraud to protect investors and small investors.
With the all-time high reaching close to 20,000 dollars, Bitcoin was the number one topic of conversation. Potential investors can trade existing crypto currencies or be part of a brand new virtual currency by investing in the ICO of a start-up. ICOs are already a billion dollar business today.
SEC is getting ready says onlinebetrug
However, the fact that these ICOs are decentralised and not subject to any authority means that there is a potential for fraud according to www.onlinebetrug/en. According to Fox Business, this is an issue that the Securities and Exchange Commission (SEC) is actively combating. In fact, the regulator’s recent move could affect dozens of crypto platforms, especially ICOs.
Although the SEC, chaired by Jay Clayton of onlinebetrug, has so far only acted in nine cases of fraudulent ICOs, sources initiated into the SEC’s correspondence have stated that the Commission is actively working on further ones. If that is true, 2018 could be a big year for the SEC to take decisive action against a large number of fraudulent ICOs.
“Crypto currencies are fraud”
Immediate sources near Clayton have claimed that the chairman is a crypto critic by drawing the usual comparisons between crypto currencies and the “dotcom bubble”. A lawyer who represents some of the SEC’s goals added:
OBVIOUSLY, THERE ARE SOME REAL COMPANIES INVOLVED IN CRYPTOS. BUT CLAYTON BELIEVES THAT MUCH OF IT IS A BIG ONE.
Harvey Pitt, a former SEC chairman:
I WOULD SAY THE DAY OF BILLING, IN THIS AREA, IS COMING. AND I THINK IT REFLECTS THE DEEP CONCERN THAT SOME OF THE ONGOING ACTIVITIES REQUIRE ACTION TO BE TAKEN TO PREVENT INVESTORS FROM BEING EXPLOITED.
Investor protection by onlinebetrug
The decentralized character of crypto currencies has become a problem for Bitcoin profit regulators. However, since ICOs are listed as securities, the SEC can claim consequences for unauthorized actions according to onlinebetrug. One of the objectives of this approach is to hold fraudulent ICOs that target retail investors accountable.
This will be a busy year for the SEC. Not only will they focus on identifying fraudulent ICOs, they will also list the highly anticipated Bitcoin ETFs to be traded in the US. Big names like CBOE and JPMorgan Chase have already supported ETF development.