US Commission Issues Subpoenas to Firms Linked to Cryptocurrencies – Reports
AFP 2018/ JACK GUEZBusiness09:11 01.03.2018Get short URL
MOSCOW (Sputnik) – The US Securities and Exchange Commission (SEC) has issued dozens of subpoenas and requests for information to companies and individuals linked to the booming cryptocurrencies market, The Wall Street Journal reported.
The SEC requested information on sales and pre-sales of the Initial Coin Offerings (ICOs) similar to the Initial Public Offerings, but not as thoroughly regulated, The WSJ reported Wednesday, citing people familiar with the matter.
A spokesman for the government agency declined to comment, according to the newspaper.
The subpoenas mark yet another step toward tighter regulations on the cryptocurrencies market, which is developing at fast pace. In January, the SEC clamped down on the ICO of AriseBank cryptocurrency project on suspicion of fraud.
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The ICOs allow cryptocurrency startups to get the necessary funding by auctioning off future digital tokens. The simplicity of the procedure makes it attractive, but the lack of proper oversight leads to higher risks for investors.