The SEC warns against the lack of regulation in the cryptocurrency market

The Securities and Trade Commission of the United States (the equivalent of the French AMF) warned investors Thursday against its inability to help those who could lose money by investing in digital currencies.

SEC reiterates its concerns over cryptocurrencies

It is no secret that the SEC is very wary of bitcoins and other cryptographic currencies, and today it reiterates its warning. SEC members advise investors to be cautious when dealing with digital assets such as Bitcoin, stressing that state regulators can do nothing to help victims of scams. The history of Bitcoin is full of anecdotes of piracy or theft, but with the massive influx of new funds into the cryptocurrency market, the warning had to be reformulated.

SEC members say that due to the anonymity of Bitcoin, it is sometimes very difficult to find people involved in fraudulent projects and bring them to justice.

Scams that amass millions of dollars

Last year, the industry saw the launch of dozens of ICOs. ICO (Initial Coin Offering) is a form of fundraising for blockchain-based start-ups and can be a great way to finance a well thought-out product. But as with all income generating systems, fraudsters are attracted. Any smart swindler can build an eye-catching website with flashy images and engaging terms and launch his own ICO that will later prove to be a pure scam, without real developers working to implement the project.

The cryptocurrency market remains almost entirely unregulated, which means investors need to be vigilant. Very few governing bodies issue scholarship licenses, and those who issue them have allowed only a few. Meanwhile, the price of bitcoin and altcoins continues to skyrocket, which is a very exciting, albeit dangerous, playground for both small and large investors.

What do you think of the statements of the SEC? With regard to ICOs, which signs do you recognize as a scam? Let us know in the comments below!