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More than 200 cryptocurrency investments are currently underway in the United States and Canada, including some in Alabama.
The Alabama Securities Commission announced in a press release that they are working with the North American Securities Administrators Association on Operation Cryptosweep, an initiative focused on Initial Coin Offerings and investment products related to cryptocurrency. In Alabama, ASC is working on 21 Initial Coin Offering inquiries and has issued seven Cease and Desist orders involving cryptocurrencies.
The effort launched in May, and since then there have been 47 "enforcement actions" involving cryptocurrency investigations, the press
ASC Director, Joseph Borg, said some of the investigations of the operation involve suspected fraud, but investigators have found people who break other laws, such as failing to register a product before being offered to investors.
is committing the necessary regulatory resources to protect investors in Alabama from financial damages involving ICO products and cryptocurrency related to cryptocurrency and is also raising awareness among industry participants of their regulatory responsibilities, "Borg said. .
"While not all ICOs or cryptocurrencies related investment is a fraud, it is important for individuals and companies that sell these products to be aware of not doing so in a vacuum; Alabama laws or regulations may apply, particularly securities laws. Sponsors of these products should seek the advice of an expert legal counsel to make sure they do not clash with the law. A strong culture of compliance should be in place before, not after, these products are marketed to investors. "
Products that qualify as securities should be registered with the appropriate regulatory agency or benefit from an exemption, thorough research before investing in any initial offer of coins or cryptocurrency products. [19659002] "Do your homework and contact the ASC with any concern before separation with your hard-earned money – after it may be too late," Borg said.
