Jay Clayton the Sec Chairman recently applauded the efforts of regulators in the United States of America and Canada to stop the fraud in the initial coin offerings. Clayton feels that the actions of the regulators should be a red flag alert for all those who are trying to sabotage the clean digital currency trading environment.
What is worth appreciating is that the regulators are cooperating at the international level to stop the fraudulent activities. The operation Crypto-Sweep has about 40 North American regulators participating in this venture.
The reason this operation started in the first place is that currently 70 investigations have been completed or in process related to crypto frauds. This is why the authorities are of the opinion that this issue cannot be ignored for long.
Clayton also stated the fact that the issuance of unlicensed securities through the initial coin offering is a serious issue. He mentioned that federal and state laws apply to the sale of securities that take place through the traditional channels or the website. This is why all necessary information related to ICO and securities should be disclosed to the investor so that he does not have to worry about any losses.
This is high-time that crypto fraudsters should take heed and they should not spoil the digital currency investment environment. The truth is that if the element of transparency is missing, then the investors will not be keen to invest in the digital currency market and they will not develop a comfort zone.
This can eventually harm the digital currency environment and this can become a hurdle in the development and the growth of digital currencies. What is needed at this point of time is that strict action should be taken against digital currency scams so that such activities are discouraged in the near future.
The regulators should review the processes of initial coin offerings and this way it will become much easier for them to identify the potential loopholes in the process. Once these loopholes are identified it will become much easier to come up with remedial processes to deal with these issues.
At the same time the investors should also do their bit of research before deciding to invest in an initial coin offering and they should gather necessary insight about securities. This way they can protect themselves from losses and gather potential profit from digital currency investments.