SEC Annual Report Focuses On ICO’s
By Steven Krohn on ALTCOIN MAGAZINE
The crypto markets have been shaky ever since the IRS and SEC announced that they were going to investigate the markets and introduce regulatory controls. The decision by the SEC in particular to treat new ICOs as securities shook confidence and reduced the number of new projects planned for the year. The SEC annual report put ICOs right in the crosshairs.
Regulations
Cryptocurrency ICOs are considered an effective way to raise finances. Investors in crypto are usually aware of the risks and products offered by new FinTech companies. However, the SEC annual report ruled that ICOs must be held liable to the same degree as any other company trying to raise funds for investment.
ICOs have been put on notice to file the same regulatory forms as companies who register as publicly traded companies. Dozens of ICOs were forced to return their security funding to investors, thus completely defeating the purpose of crowdfunding. Thus the SEC annual report has had a major impact on the future of ICOs.
Experts believe that the SEC is now looking at virtual exchanges more than individual crypto platforms. The evidence suggests that they are enforcing stricter policies across the spectrum. According to the SEC annual report, this…
