Breaking News

 Colorado Joins North Dakota To Announce ICO Enforcement Actions

Across US and Canada, the state authority and provincial securities regulators are actively looking into the policies regarding marketplace for ICOs and other security tokens.

news-image

They are also preparing to supplement their efforts at a federal level within the US, now under the SEC. The active participants on this front are Texas and Massachusetts. Recently, New York also issues a blistering report regarding a cryptocurrency exchange status. Colorado together with North Dakota lies amongst the latest ones to announce their enforcement actions in opposition to crypto businesses.

Colorado initiates numerous administrative actions namely show cause orders. They have an issuance of 2 cease and desist orders for fraudulent security offerings in the form of ICOs. Following this, In October and September, North Dakota also issues an advisory alert together with security enforcement action in opposition to ICO issuers.

These latest actions again underscore the risks to ICO issuers who do not comply with applicable securities laws. There are two simple rules at play.

  1. If a financial instrument is a security, irrespective of its name and how it has been marketing. Its offer and sale must get registration with the SEC as well as applicable states. However, an exemption regarding the registration must be available in every affecting jurisdiction.
  2. All marketing efforts either written docs or oral statements belonging to potential investors must neither omit nor misstate any material facts relating an offering.

Share your thoughts with us- TwitterTelegramLinkedinInstagramFacebook

Show More

Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

Related Articles

Back to top button
Close
Close