According to the regulatory body, unregistered offers of this type of securities may not omit important data for making informed decisions.
The Securities and Exchange Commission (SEC) of the United States issued this Thursday a investor alert noting that the companies that offer values of crypto assets they may not be complying with US law.
As indicated by the SEC, unregistered offers of this type of value may not provide important dataincluding audited financial statements, for informed decision making.
In its alert to investors, the SEC also warned investors about “proof of reserves” services offered by some cryptocurrency exchanges that supposedly allow users to verify that an exchange has enough assets to back customer holdings.
“Crypto asset entities could use these services instead of audited financial statements in order to hide and confuse customers about the security of their assets,” according to the SEC.
SEC seeks to regulate cryptocurrencies
He securities watchdog is trying to take crackdown on the cryptocurrency sector. In this sense, its president described this type of asset as a “wild west” and assumed that the sector is riddled with bad practices.
Regulatory impetus from the SEC intensified after the bankruptcy, in November, of FTXSam Bankman-Fried’s cryptocurrency exchange.
In that framework, Coinbase cryptocurrency exchange announced last Wednesday that received a notification Wells. This type of notice is a formal statement that the staff of the SEC intends to recommend enforcement action.
Source: Ambito
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