Probes into cryptocurrency and ICO fraud are in the hundreds, according to a new reveal from NASAA…
It’s little secret that not every cryptocurrency is equal, and that for all the legitimate digital currencies in the world, there are some less scrupulous coins too. Add in the continued number of fraudsters using crypto, and that’s a lot of work for regulatory and investigative bodies to keep on top of.
Perhaps the contents of the latest press announcement from the North American Securities Administrators Association (NASAA) shouldn’t be a great surprise then. NASAA, which brings together security regulators from Canada, the USA, the US Virgin Islands, Mexico and Puerto Rico, has revealed that its operation investigating ICOs and cryptocurrencies now has over 200 strands to it.
That is, it’s looking into over 200 different cases, as part of its coordinated crackdown on cryptocurrency scams. These all come under the umbrella of Operation Cryptosweep, that has been in operation since May of this year. The operation has thus far also led to 46 “enforcement actions”, that involve ICOs or cryptocurrency-related products.
NASAA also issued some guidance as part of its statement, noting that:
“While not every ICO or cryptocurrency-related investment is a fraud, it is important for individuals and firms selling these products to be mindful that they are not doing so in a vacuum; state and provincial laws or regulations may apply, especially securities laws. Sponsors of these products should seek the advice of knowledgeable legal counsel to ensure they do not run afoul of the law. Furthermore, a strong culture of compliance should be in place before, not after, these products are marketed to investors”.
The NASAA website contains information on state and province securities regulators, and can be found here.
Details of the 200 plus ongoing investigations, as you might expect, stay under wraps for the time being.