After investigating Coinbase, the SEC or Securities and Exchange Commission decided to extend its action to other exchange platforms in the United States. Since the SEC has jurisdiction to act in traditional financial markets, it also considers itself competent to investigate certain aspects of cryptocurrencies. Indeed, the securities tokens of the crypto world are comparable to stock market securities.
Main target of the SEC: Coinbase
A few days ago, the SEC opened an investigation into Coinbase over its asset listing. Indeed, the institution accuses the platform of offer its users tokens that should be considered securities, that is to say “securities”. This constitutes a crime according to the SEC, but Coinbase maintains that it does not list securities.
Recall that in a previous case, Coinbase fired one of its employees who was accused of insider trading. It is this case that prompted the SEC to extend its action to other exchanges. Forty platforms of cryptocurrency exchanges would be affected.
An example of a scam: Asuka’s developer exit scam
Among the risks in the field of crypto is the exit scam. Amateur and uninformed users risk falling victim to it. It is a scam which consists for the author of the fraud of continue to receive payment for new orders while he stopped sending.
Between the moment deliveries have ceased and the moment payments continue, a certain amount of time may pass. Finally, the scammer walks away with the money. Jongchan Jang, the developer of Asuka – fork of York.Finance (YFI), had abandoned the project with the funds raised, only 2 days after its launch.
Investigable bitcoin buying sites
Not having an official list on the platforms that may be affected by the investigation in the United States, let’s see some exchanges using cryptocurrencies and which could be involved:
- eToro: simple to use, this platform allows its users to buy Bitcoin with PayPal or a bank card.
- Binance : among the world leaders in the crypto market, this platform offers a wide choice of cryptos apart from Bitcoin.
- Bitpanda: this easy-to-use platform offers fast and secure investing in digital financial assets.
The SEC is recognized as the US stock market watchdog. Its actions make it possible to regulate financial activities involving cryptocurrencies. Although its regulation impacts on everyone’s freedom and even on private life, it is clear that the new forms of online scams require increased surveillance and close monitoring.
Passionate about cryptos, NFTs and more generally everything related to Blockain, I share all my advice with you on my blog! Attention, I am not an expert and what I say should absolutely not be taken as an absolute truth. I am not an investment advisor 🙂
Also find my articles on my LinkedIn account!