After imposing sanctions on two US encryption companies to issue unregistered values, the United States Securities and Exchange Commission (SEC) published an explanation of the strategy they apply to regulate cryptocompanies. Although not framed in a new regulatory framework, as requested by members of the crypto community months ago, This strategy establishes the application of securities laws in force in all sectors of cryptomeconomics.
O strategy adopted by the SEC determines the application of current legislation for the offer and sale of digital assets, including Initial Cryptocurrency Offers (ICO); investment vehicles related to digital assets; and the trading of crypto-coins in secondary markets. In this way, it establishes that foreign exchange offices, brokers, advisors, administrators, investment funds and ICO they must comply with the provisions of the Securities Act.
Defined by the Corporate Finance Division, the Investment Management Division and the Trade and Markets Division, the strategy establishes that commercial activities involving crypto-currencies must comply with the registration and regulatory obligations established by the Securities Exchange Law. 1934
Offer and sale of crypto-crashes
The Securities and Exchange Commission has established that, since crypto is a security, the offer and sale of the same shall be applied as in the sale of any other financial asset: under SEC registration.
Among the provisions on the provision of digital assets, it should be noted that the Securities and Exchange Commission does not permanently close the doors to the ICO. In fact, it states that "even when issuers have already made an illegal and unregistered offer of digital asset values, There is a way to comply with federal securities laws ".
This action plan is based on all disciplinary actions taken by the SEC during this year. So to illustrate how the current regulation works for the initial offers of cryptoactive and the sale of digital assets, the US regulator cites the recent civil sanctions against AirFox and Paragon Coin.
On November 16, the SEC published the two circulars through which it announced that CarrierEQ Inc (AirFox, as it is known) and Currency Paragon Inc. were fined $ 250,000 for the issue of unlicensed digital titles. In addition to the fine, agreed to return the funds for investors who request and add their tokens to the list of securities registered with the Securities and Exchange Commission.
It is important to note that in these exemplary sanctions the two companies must pay the same amount of money as a fine. Whereby Legal experts say that this is a sign that there is no investment risk assessment of each project, because they are both projects that work in such distant economic sectors, they should not be evaluated in the same way.
The AirFox is a peer-to-peer and micro-loan payment application, which also allows its users to manage AirTokens by interacting with advertising. On the other hand, Paragon Coin has raised a collection with encrypted coins to develop a supply chain platform for the retailing of cannabis.
In addition, the promise to return the proceeds from the sale of tokens could generate financial problems for the cryptocompany in question. This is due to the fact that the Criptomoeda Initial Offers are usually made as an alternative form of financing, as opposed to the traditional investment rounds. Therefore, guaranteeing the return of the funds with which they claim to have completed the development of the project could mean closing it. However, being two projects that are not being accused of fraud or maintain any other type of sanction, investors are not so prone to request the return of their funds.
These two companies did not comply with the regulations in force, the companies were not forced to close or received one million fines. It seems that the SEC refers to this when it states that there is still "a way to comply with federal laws": the agreements.
In the case of investment vehicles, which maintain traditional financial operations by adding crypto corridors, the SEC establishes that, in addition to the Securities Law, these companies and actors are regulated by the Investment Companies Law.
This is why in relation to the directors, managers and brokers of investment vehiclesas an ETF, the Securities and Exchange Commission determines that they must "take into account regulatory, fiduciary and registration obligations" as set forth by the Investment Companies Act, the Consultants Act and other federal securities laws.