September 25, 2020

SEC updates ICO regulation guide

SEC updates ICO regulation guide

February 10 US Securities and Exchange Commission (SEC) updates guidelines ICO, as the regulator wrote on Twitter. A special section has been created on the regulator’s website that lists five aspects of ICO, as well as a separate section for investors.

Despite the fact that the content has existed since March last year, the SEC decided to attract attention to it on social networks only this weekend.

The guide also refers to the risks associated with investing in this sector and encourages everyone to conduct their own research before parting with their capital.

“Companies and individuals are increasingly consideringInitial Coin Offers (ICOs) as a way to raise capital or participate in investment opportunities, ”the manual says,“ While these digital assets and the underlying technology can be an innovative and effective tool for conducting financial transactions “They also increase the risk of fraud and manipulation, as these asset markets are less regulated than traditional capital markets.”

Last week, SEC chairman Jay Clayton spoke about the benefits of an ICO, and he also emphasized the need for investors to protect.

ICO industry currently accounts forin terms of market capitalization and the majority of tokens after the ICO are sold at a lower price, due to which some investors suffered losses of more than 90%.

In December, Arthur Hayes, CEO of Hong Kong's BitMEX cryptocurrency trading platform, said he expects the ICO market to revive by 2020.