The US and Canadian regulatory authorities are cracking down on cryptocurrency and ICO scams and have already launched a series of probes dubbed Operation Crypto Sweep.
Regulators policing the crypto investment schemes
In the latest developments on crypto regulation, the regulators in the US and Canada are cracking down on the cryptocurrency investment schemes. According to the members of the North American Securities Administration Association (NASAA), this widespread crackdown is focused on the ICOs.
Reportedly, about 70 investigations have been started by the watchdogs of over 40 states and provinces that are participating in this programme which is given the name Operational Crypto Sweep.
Many of these investigations have already been conducted that are focusing on the ICOs and unregistered securities offerings that promise significant returns but without informing about the risks to the users along with other investment schemes.
The director of the enforcement at the Texas State Securities Board, Joseph Rotunda stated:
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“Although the international task force’s work is far from complete, my suspicions have already been confirmed: the market for cryptocurrency investments is saturated with fraud, and our work is only revealing the tip of the iceberg.”
Recently, an action has also been taken by the Texas regulator against the Wind Wide Coin that was using the photos of celebrities like Jennifer Aniston and Prince Charles to dupe crypto investors.
Rotunda commented that:
“Promoters also know that anyone can be anyone and say anything about anything on the internet. Not surprisingly, they are also manipulating photographs, media, testimonials and other online information to deceive the public into believing their claims.”
Also, read: Crypto Scams Accounted for Less than 1% of Australian Scam Economy
Looking for active cooperation from public
In April, a task force was created by a group of regulators that has launched a total of 70 investigations, out of which 35 are already undergoing pending or completed enforcement actions.
A number of these alleged schemes that rely on fake addresses are already been sent cease and desist letters by the regulators. Also, companies that are trying to defraud crypto investors will have to face additional enforcement actions as per the officials.
Regulators are also inviting the public to come forward with the potential scams while urging them to be more vigilant when seeking investments.
Joe Borg, NASAA president and director of the Alabama Securities Commission said:
“You’re going to see in this space a lot more collaboration and cooperation going forward.”
Recently, cryptocurrencies gained a lot of attention from SEC and CFTC as well, so much so that SEC even launched a fake website to show how easy it to create one.
What are your views on the launch of the Operation Crypto Sweep? Share your thoughts with us!
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