The U.S. Securities and Exchange Commission has issued a telling on cryptocurrency exchanges. The SEC says that many exchanges are currently unregulated and can do whatever they crave with your coin. As overseas investors, you should be extremely careful. As a company loping exchange experiences, you should expect a crackdown soon.
The SEC first is of the view that cryptocurrencies and clues offered through ICOs are defenses. As protections, cryptocurrency exchanges should follow the same rules as every exchange. They should cross-file through the SEC as their own nationals protections exchange, alternative solutions trade system( ATS) or a broker-dealer.
But the SEC says that the current situation is a mess. “The SEC staff has concerns that numerous online trading programmes appear to investors as SEC-registered and settled marts when they are not, ” the SEC wrote. “Many platforms refer to themselves as’ exchanges, ’ which can give the misimpression to investors that they are regulated or encounter the regulatory the terms and conditions of their own nationals defenses exchange.”
Many exchanges have set up their own guidelines when it comes to registering new cryptocurrencies, but the SEC has no say in this process and can’t guarantee that those are safe investments.
Similarly, the SEC never refreshes trading implements on cryptocurrency exchanges. For instance, if you refer a limit line-up on an exchange, you were supposed to rely on the exchange that it’ll rigorously follow your order. The exchange could give priority to big investors or screw up the require notebook without any consequence.
The SEC also reminded cryptocurrency exchanges that they’re supposed to register as an ATS for example. After Circle’s acquisition of Poloniex Nathaniel Popper examined a confidential Circle presentation. Circle plans to work with the SEC to registry Poloniex 😛 TAGEND