THELOGICALINDIAN - US regulator the Balance and Exchange Commission SEC again calls for ICO badge issuers to accede with balance laws November 16 as it activated penalties adjoin Paragon and AirFox
Paragon, Airfox Will Lose Millions
In a statement, the SEC appeared to seek a antithesis amid allowance and administration of “well-established” rules as it accepted acknowledged activity adjoin the two ICO operators, which calm aloft over $27 actor in 2017.
“We ambition to accent […] that bazaar participants charge still attach to our absolute and well-functioning federal balance law framework back ambidextrous with abstruse innovations, behindhand of whether the balance are issued in certificated anatomy or application new technologies, such as blockchain,” assembly wrote.
Paragon and AirFox are aloof two of the ICOs to accept collapsed abhorrent of US regulators, the SEC claiming they had accustomed they had affianced in the auction of unregistered securities.
Accordingly, both charge accord millions of dollars in ICO revenues to investors, as able-bodied as pay a civilian money amends of $250,000, the aboriginal chapter of which in the case of Paragon is due aural 30 days.
“The SEC’s move was absolutely a welcome one. Added and added ample industries are advancing to acquire that cryptocurrencies are acceptable an basic allotment of the banking system, but in adjustment for the blockchain industry to become absolutely mainstream, the industry needs arena rules and guidance,” commented Herbert Sim, CCO, Cryptology, to Bitcoinist.
“This is decidedly accurate in the case of ICOs, area the majority of counterfeit action has taken place such as avenue scams which accept taken over millions of funds… In adjustment for the amplitude to move advanced and grow, regulators charge to put standards in abode which abstracted the weeds from the roses. Regulating the cryptocurrency ‘Wild West’ will advice legitimize, and after abound the industry.
No More Hazy Areas
“The Divisions animate and abutment addition and the appliance of benign technologies in our balance markets,” the SEC assured about its stance.
“However, the Divisions acclaim that those employing new technologies argue with acknowledged admonition apropos the appliance of the federal balance laws and acquaintance Commission staff, as necessary, for assistance.”
As Bitcoinist reported, cannabis-focused Paragon had all but collapsed bashful in contempo months, with efforts to abound the activity acutely bedfast to activities such as aperture coworking spaces.
In accession to the two ICOs, the account added referenced activity taken afresh Zachary Coburn, the architect of decentralized trading belvedere EtherDelta.
Earlier this month, Coburn had faced charges of operating an “unregistered balance exchange” and agreed to pay $388,000 in penalties, admitting not yet accepting his culpability.
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