SEC on Unlawful Online Platforms Trading in Digital Assets

By Rizwan Qayyum

The Securities and Exchange Commission (SEC) released a statement today which advises of the dangers of cryptocurrencies and other digital assets, which may be offered or sold in an ICO, being traded using online exchanges. The statement states that a number of “potentially unlawful” platforms are appearing to provide investors with unearned safety and that “the SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not,” the agency said.

The statement is targeting exchanges, and also noted that online wallets may also qualify under existing regulations if they are in a position to facilitate trading. No cryptocurrency exchange is currently registered as an approved exchange by the SEC.

You can read the SEC statement here.