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The SEC of the United States warned investors about the risks associated with trading in the cryptocurrency space. The commission failed to set up an adequate regulatory framework for the industry, but did not limit itself to acting against fraudulent projects and ICOs that mislead investors.
Ethereum Price (ETH) today – ETH / USD
The committee's recent crackdown has set the criptovalute space on fire. This is because it is the first time that a founder of an Ethereum-based platform will be examined. EtherDelta, the exchange under examination is a secondary market for ERC20 tokens. Its founder failed to register the exchange with SEC or an exemption, and therefore the founder was carefully examined.
The exchange must get permission from the commission as they were exchanging tokens classified as securities.
DAO report
This has become the law since the SEC published a report on the decentralized autonomous organization last year. The DAO was suggested by a hack the previous year that caused the splitting of the first Ethereum Blockchain and created the classic Ethereum and Ethereum.
This report also states that organizations issuing security tokens must register with the SEC, unless a valid exemption is required. It also stressed that all crypto exchanges had to register as national security centers, unless they were eligible for a valid derogation.
The founder of EtherDelta, Zachary Coburn, has agreed to pay the commission and pay the money earned with commercial tokens. It amounted to $ 300,000 and includes $ 13,000 in injury interest and a $ 75,000 fine.
Co-director of the SEC Enforcement Division, Stephanie Avakian said,
"EtherDelta had both the user interface and the basic functionality of a national online stock exchange and was required to register with the SEC or qualify for an exemption".
A co-director of the control division also said,
"We are witnessing a moment of significant innovation in the securities markets with the use and application of distributed ledger technology. But to protect investors, this innovation requires careful oversight of digital markets and the enforcement of existing laws by the SEC".
In addition, Rober Cohen, head of the SEC cyber unit, believes that the people behind the code will be responsible. He was interviewed by Forbes, and he said,
"Attention is not on the label you put on something or the technology you are using. The focus is on the function and what the platform is doing. Whether it is decentralized or not, whether it is an intelligent contract or not, what matters is that it is an exchange".
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