It is a well-known fact that a significant number of the cryptocurrency investment schemes are actually fake. That is why regulators in US, as well as Canada, are now launching a widespread crackdown on cryptocurrency investment schemes. According to the North American Securities Administrators Association, only the suspected cryptocurrency investment schemes will be looked at closely. In the operation crypto-sweep, at least 40 state regulators are taking part. There have been at least 70 investigations still now which are underway.
This clearly indicates that regulators from the North American continent are coordinating together in order to regulate the cryptocurrency investment schemes. They are mostly taking into account the initial coin offering’s. As a result, the fake initial coin offering’s which have made the investors lose millions of dollars are actually on their radar. It remains to be seen whether they are able to unearth some of these fraud ICO’s and protect the investors.
BTCrush in May of this year received a letter from Texas regulators clearly stating that they were violating certain rules and regulations pertaining to securities. Later on, in response to this notice, the company recorded a video of their mining operations and published it online. On the other hand, state regulators stated that these videos were not of actual mining premises but they were sourced from openly available footage which can be streamed online.
Similarly, a regulator in Texas also took action against a token which went by the name of Wind Wide Coin. It was using pictures of various celebrities who did not have any association with that in order to market the cryptocurrency. As a result, the regulators cracked down on it.
Similarly, there are quite a few other instances as well in which the regulators have tried to intervene whenever there is a false practice which is being conducted.
The regulators also clearly stated that not each and every cryptocurrency investment is actually a fraud. However, the number of fraud investment opportunities which are doing the rounds are also pretty high. That is why it is necessary for the regulators to regulate the cryptocurrency related investments. Only when the fraudulent ICO’s, as well as investment schemes, are done and dusted with, the investors will be protected and they will be able to invest in legitimate schemes. The effort is on to protect the investors so that they do not lose money to fraud in the longer run.
