Is it happening? Is the government trying to dip its hands into cryptocurrency?
SEC recently concluded that ICO's (Initial Coin Offerings) might be subject to securities law. The conclusion came after the investigation conducted in the hacking controversy of DAO, a decentralized organization that intended to operate as an investment fund managed by shareholders and raised its funds through an ICO.
image from pixabay
SEC's main concern is to ensure that investors in ICO have full knowledge of the risks and it can be done by subjecting the sales to securities law requiring companies to comply with disclosure requirements.
"Investors need the essential facts behind any investment opportunity so they can make fully informed decisions, and today's report confirms that sponsors of offerings conducted through the use of distributed ledger or blockchain technology must comply with the securities laws," said William Hinman, director of the division of corporation finance, in a statement.
I understand that SEC is just trying to protect the interest of investors, but I'm also wondering if this will mean future regulations of ICO and cryptocurrencies.
To what extent can government around the world really regulate blockchains?
Can they control it in the first place?
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