The cryptomania craze will linger on for decades, and many people are putting a stake in cryptocurrency. Whether the price plunges, investors are still optimistic that it will regain its high status no matter what. Several altcoins are emerging,and they are faring well in the market exchange. Securities and Exchange Commission (SEC) has nothing against it, but there are things that the agency wants the investors to know about cryptocurrency.
No ICO’s are registered with SEC. Currently, not a single Initial Coin Offering (ICO) is registered with the SEC. According to SEC Chair Jay Clayton, investors should realize that as of the moment, no ICOs have been registered with the agency. Likewise, it has not to date certified for listing and transacting any exchange-traded products holding digital currencies or other equities associated with cryptocurrencies.
The SEC couldn’t always back you up. In a market where cryptocurrency is unregulated, if the exchange got hacked, there is a possibility that the funds will never be recovered.
Some ICO tokens are absolutely securities. There has been a misunderstanding that ICO token are not securities, which is however, not the case. Clayton notes that the Commission enforced long-established securities law foundations to determine that a certain token represented an investment deal and in that case was security covered by the federal securities law.
SEC considers crypto like currencies. The agency will not cease keeping an eye on digital currencies. They will intensify their keeping track of cryptos and treat it like the fiat currencies backed up by the government.
SEC appreciates cryptocurrency. The agency has no issue with Bitcoin and other virtual currencies.
If SEC can’t have your back if you have any issues with your cryptocurrency investment, an embassy is ready to help. They are not officially launched but are already open to accommodate any issues regarding cryptocurrency investment especially wallet recovery. The Atlanta Bitcoin Embassy will formally launch in April of this year.
Meanwhile, South Korea has celebrated the first-day success of its newest cryptocurrency called Spyce. It is dnet’s appreciating currency and can be acquired through domestic miming. It has just been launched, and the digital currency has almost reached $200,000 and still counting.