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The SEC is cracking down on cryptocurrency 'initial coin offerings'

By Polycount ยท 6 replies
Mar 1, 2018
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  1. Though many cryptocurrency fans adore their chosen coins for the relative lack of significant government regulation, that may change soon. Countries around the world seem to be taking steps to block, regulate or monitor cryptocurrency transactions and trading.

    While not the blanket regulations that some countries seem interested in pursuing, it seems the Securities and Exchange Commission (SEC) will be taking a hard look at various cryptocurrency initial coin offerings, more commonly known as "ICOs."

    As reported by The Washington Post, this renewed SEC interest comes after a series of "warning shots" aimed at the cryptocurrency world from current government securities regulators.

    According to sources familiar with the matter, the SEC has reportedly begun to issue subpoenas to companies who have performed ICOs in the past as well as their legal counsel. The goal of these subpoenas is to determine whether or not offerings were conducted according to existing securities laws and regulations. Specifically, the SEC is demanding information regarding the structure of ICO sales and pre-sales.

    "We're seeing the tip of the iceberg ... there is going to be a ton of enforcement activity,"

    "We're seeing the tip of the iceberg ... there is going to be a ton of enforcement activity," said former SEC commissioner Dan Gallagher.

    It's not just the companies offering ICOs that have wound up under the SEC's microscope. According to The New York Times, investors who have bought into ICOs are also being placed under intense scrutiny, with the SEC's subpoenas reportedly requesting information on their identities.

    Whether or not the SEC's investigations will turn up anything actionable remains to be seen. However, it's clear that government officials aren't content to let the "Wild West" environment the cryptocurrency market currently thrives in continue to grow unchecked.

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  2. VitalyT

    VitalyT Russ-Puss Posts: 4,529   +3,098

    Enforce all you want, It will be as successful as your war on drugs.

    People got the taste of printing their own money, and exchanging for the real ones. That's more powerful than heroin. The government doesn't realize that yet, as usual.

    Crypto crowds are your new cartels in disguise. When it comes to money laundering, they put drug dealers to shame.

    As they used to say - this is the new world order, except this time it is for real.
     
  3. QuantumPhysics

    QuantumPhysics TS Evangelist Posts: 1,368   +1,006

    Only Americans will be handicapped.

    Foreigners have the "FREEDOM" to trade into whatever they want at their own risk.

    Hey - wait aminute...I thought WE were free???
     
  4. Evernessince

    Evernessince TS Evangelist Posts: 4,083   +3,629

    The problem with Crypto currency is that it requires a massive amount of computer resources to verify transactions. If there is a particular currency that is being used for illegal activities too much, it wouldn't be that hard to find out where that is coming from and stop it. Whether that be through a physical action or blocking or DDoS. After all, a subpoena to either a Crypto miner or their ISP is more than just a threat. People aren't going to want to invest a ton of money in a crypto mining facility that's earning coins that are used for child sex trafficking or drugs.

    The government can definitely curb the illegal use of Crypto currency by discouraging investment and nabbing any large operations. This will severely limit transaction processing time.
     
    Lionvibez likes this.
  5. yRaz

    yRaz Nigerian Prince Posts: 2,935   +2,256

    ICOs need to die, they're ruining real crypto
     
    Comanche likes this.
  6. MaikuTech

    MaikuTech TS Evangelist Posts: 1,072   +187

    If you all think about it, you can't really blame them for doing so, with hackers sending malware infections for money.
    Bitcoining has become a real problem and thats mostly what cyber crooks aim for.
    Let them monitor it if we don't have someone to regulate doing things in the open blue internet.
    It could be the downfall of everything else to come in the future.
     
  7. VitalyT

    VitalyT Russ-Puss Posts: 4,529   +3,098

    But the fact remains that every crypto-currency newcomer is there for his own enrichment, nothing else.
     

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