Author: Xu Yanyan
The Securities and Exchange Commission (SEC) has stepped up its crackdown on the ICO in the past few months, with hundreds of encrypted currency companies in the doldrums.
Earlier this year, the SEC issued a series of preliminary information-seeking subpoenas, which now subpoena some of the companies and more companies that do not sell their tokens only to qualified investors.
The SEC has put pressure on these companies, and many have responded by agreeing to refund and pay fines to investors. This has led many of the summoned start-ups to get into trouble.
In February, Jay Clayton, chairman of the Securities and Exchange Commission, said he thought most new digital tokens should be considered securities.
According to the SEC, any U.S. company that wants to issue securities must register with the SEC or be exempt from it. But in fact, none of the ICO booms has been registered, so they must get exemptions.
The exemptions include selling only to investors outside the United States, or to qualified investors, who have earned more than $200,000 a year or a minimum net worth of $1 million in the past two years.
Not only the United States, but also the European Union's securities regulator recently announced that all ICOs are being investigated to see if they should be regulated.
In fact, in order to guard against and defuse the risks in the field of virtual currency, China has acted as early as a year ago. In September last year, the People's Bank of China jointly issued a Notice on the Prevention of the Risk of the Issuance and Financing of Tokens, characterizing the issuance and financing of tokens as an act of illegal public financing without authorization, suspected of illegal issuance and sale of tokens, securities and illegal fund-raising, financial fraud, pyramid selling and other criminal activities. . And to guide local governments to clean up the bitcoin and other virtual currency trading venues and ICO activities.
Since then, the central bank has continued to emphasize that it will resolutely crack down on ICO's emergence and various variants. We should closely monitor and strengthen the research and judgement, and fight early and fight against small disasters. According to reporters, virtual currency trading platforms and ICO trading platforms around the country are basically risk-free exit.
Bitcoin has fallen by more than 52% so far this year, after soaring to a high of $20,000 in December. Other encryption currencies also suffered the same. This year, the total market capitalization of the encrypted currencies dropped by more than 60%.
As of press release, BITSTAMP website bitcoin transaction price of $6200, down 4.6% in the day.
Waonews is a news media from China, with hundreds of translations, rolling updates China News, hoping to get the likes of foreign netizens