Legal Experts Warn of Coming Crackdown on Token Exchanges

As the blockchain community grapples with the fallout from recent regulatory actions, legal experts are warning more enforcement measures could be on the horizon – and that token exchanges are a probable target.

To recap, last week saw the U.S. Securities and Exchange Commission (SEC) rule that a defunct blockchain-based token called The DAO constituted an unregistered security. Just hours later, the Department of Justice and the Financial Crimes Enforcement Network (FinCEN) levied a $110 million penalty against BTC-e and arrested one of its founders – actions that struck an exchange that had long openly flouted the law.

The timing seemed hardly a coincidence, and at a blockchain industry conference in Washington, D.C., on Friday, Carol Van Cleef, a fintech attorney at Baker Hostetler, affirmed that she believes the two events are likely to be closely linked.

https://www.coindesk.com/legal-experts-warn-of-coming-crackdown-on-token-exchanges/