U.S. Securities and Exchange Commission (SEC) announced that so-called initial coin offerings, or ICOs, may very soon be subject to the same securities laws as other more traditional investment instruments.
Depending on how a particular ICO is set up, the SEC explained in a press release, it may be subject to securities laws for the purpose of protecting investors from being taken advantage of by shady companies that might be trying to use the platform to commit crimes.
The SEC has issued a investigative report that cautions market participants who engage in the buying and selling of digital assets via “virtual” organizations that some of them will be subject to these new requirements. While some crowdfunding contracts will reportedly be exempt from this classification, including those that register with the SEC and the Financial Industry Regulatory Authority, others will face scrutiny as part of a vetting process.
Read the whole report here:
https://www.sec.gov/news/press-release/2017-131
What do you think? Is this the start of government crackdowns on cryptocurrency?
