SEC: ICOs Can be Securities Offerings and Need to be Registered

2018-11-21 14:22

Late last week, the SEC released a statement informing the crypto and investor communities that it had settled with two ICOs that had carried out unregistered securities offering. The two firms that were cited by the SEC were CarrierEQ Inc. (Airfox) and Paragon Coin Inc. The settlement included the following actions:

Each ICO was fined $250,000 Each was ordered to compensate harmed investors who purchased tokens in the illegal offerings Both firms agreed to register their tokens according to the Securities Exchange Act of 1934 They were also to file periodic reports with the Commission for at least a year SEC’s Statement on Digital Asset Securities Issuance and Trading

Right after the settlement with the two ICOs, the SEC went ahead and issued another statement from its Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets.

The second statement made it clear that the SEC was okay with emerging technologies such as blockchain and distributed ledgers. The Commission went ahead to even encourage such innovations as can be seen from the following excerpt that also informs market participants (ICOs) to adhere to existing laws:

The Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets (the “Divisions”) encourage technological innovations that benefit investors and our capital markets, and we have been consulting with market participants regarding issues presented by new technologies.

We wish to emphasize, however, that market participants must still adhere to our well-established and well-functioning federal securities law framework when dealing with technological innovations, regardless of whether the securities are issued in certificated form or using new technologies, such as blockchain.

ICOs Can Be Securities Offerings

The SEC had earlier on issued guidelines on ICOs back in late August. The ICO guidelines on the Commission’s website clearly states that based on specific facts, some ICOs fall under securities offerings and need to be registered accordingly.

The Commission also advises would-be-investors of such opportunities, to always carry out their due diligence. Such in depth analysis of the opportunity at hand allows the investor to find out if the ICO being presented, falls under the category of a Securities Offering.

SEC Warns About the Risks Involved

The SEC also has warned about fraud as can be seen in the following statement.

While some ICOs may be attempts at honest investment opportunities, many may be frauds, separating you from your hard-earned money with promises of guaranteed returns and future fortunes.

They may also present substantial risks for loss or manipulation, including through hacking, with little recourse for victims after-the-fact.

Existing Securities Laws Apply to ICOs

Summing it up, the SEC clearly stated that existing laws do cover Initial Coin Offerings. As earlier stated, some of these laws date back to 1934.

What are your thoughts on the SEC finally providing clarity on ICOs? Please let us know in the comment section below. 

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post SEC: ICOs Can be Securities Offerings and Need to be Registered appeared first on Ethereum World News.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

ICOS (ICOS) на Currencies.ru

$ 2.4082 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: -2.29 %
Cегодня L: $2.4082 - H: $2.4082
Капитализация $1.192m Rank 99999
Доступно / Всего 494.831k ICOS

sec icos securities had two each offerings

sec icos → Результатов: 122


US SEC Reminds Crypto Investors 5 Important Facets of Initial Coin Offerings (ICOs)

On Saturday, November 10, 2018, the U.S Securities and Exchange Commission (SEC), took to its Twitter account to express the following: Five things you need to know about ICOs: https://t.co/N1cfvEjmM6 — SEC_News (@SEC_News) November 10, 2018 As seen above, crypto investors are being advised on what Initial Coin Offerings (ICOs) are and things to keep […]

2018-11-11 21:40


Джон Макафи: я больше не стану заниматься продвижением ICO

Всем, кто занимается продвижением ICO в США, может грозить арест. Об этом сообщил известный криптоэнтузиаст и основатель MGT Capital Investments Джон Макафи после получения предупреждения со стороны Комиссии по ценным бумагам и биржам (SEC).

2018-6-19 17:40


Джон Макафи перестанет рекламировать ICO из-за угроз со стороны SEC

Один из самых влиятельных промоутеров ICO Джон Макафи объявил, что прекратит продвигать ICO-проекты в связи с «угрозами» со стороны SEC. Об этом Джон Макафи, создатель антивирусного программного обеспечения McAfee и известный крипто-евангелист, объявил в своем Twitter-аккаунте: Due to SEC threats, I am no longer working with ICOs nor am I recommending them, and those doing […] The post Джон Макафи перестанет рекламировать ICO из-за угроз со стороны SEC appeared first on .

2018-6-19 16:03


SEC угрожает Джону Макафи

На фоне неуверенности и шаткой консолидации криптовалютных рынков SEC продолжила войну и ответила на высказывания скандального Джона Макафи. Комиссия хочет прекратить магию «эффекта Макафи». Due to SEC threats, I am no longer working with ICOs nor am I recommending them, and those doing ICOs can all look forward to arrest.

2018-6-19 14:50


Макафи вновь выступил против SEC

Сторонник криптовалют Джон Макафи в очередной раз выступил против Комиссии по ценным бумагам и биржам США (SEC). На этот раз он возмутился заявлением регулятора о том, что все токены, выпущенные в ходе ICO, являются ценными бумагами.

2018-6-18 13:59


Джон Макафи: буду бороться c SEC до последнего вздоха

Основатель MGT Capital Investments и создатель антивируса McAfee Security Джон Макафи назвал признание ICO-токенов в качестве ценных бумаг «абсурдом» и заявил, что будет бороться против этого решения «до последнего вздоха».

2018-6-18 12:13


Фото:

5 ICOs are expected to be approved this month by Thailand’s SEC

Thailand’s securities regulator is reportedly expecting to approve five initial coin offerings (ICOs) later this month. According to the Bangkok Post on Wednesday, the Thailand Securities and Exchange Commission (SEC) has said that, while 50 ICOs in the country are currently applying for regulatory approval, five of them are already in a position to move ahead.

2018-6-14 17:03