India Warns to Stay Away from Cryptocurrency

RBI has clarified that it has not given any licence to any company to operate with cryptocurrency 
29 December 2017   1437

The Reserve Bank of India issued a statement on Friday comparing cryptocurrencies to ponzi scheme and warned people to stay away from virtual currencies such as bitcoin. RBI added that cryptocurrencies are not backed by regulations hence there is a real and heightened risk of investment

There has been a phenomenal increase in recent times in the price of cryptocurrencies including Bitcoin, in India and globally. Cryptocurrencies don’t have any intrinsic value and are not backed by any kind of assets. The price of Bitcoin and other cryptocurrencies therefore is entirely a matter of mere speculation resulting in spurt and volatility in their prices.

 

Arun Jaitley

Finance Minister of India

The Minister also said that transactions of cryptocurrencies are encrypted and they are also likely being used to carry out illegal activities, such as, terror funding, smuggling, drug trafficking and other money-laundering Acts.

RBI has clarified that it has not given any licence to any company to operate such schemes or deal with bitcoin or any cryptocurrency. The government also noted it that cryptocurrency is not legal tender and it does not have any regulatory permission or protection in India.

SEC to Cease Simex Securitites Trading

As reported, under the federal securities laws the SEC can suspend trading in a stock for 10 days
23 October 2018   41

The US Securities and Exchange Commission (SEC) suspended trading in securities of the American Retail Group (OTC: ARGB), also known as Simex, Inc. This is reported on the website of the agency.

According to representatives of the regulator, the decision was caused by false statements by the company about partnership with a “qualified and approved custodian”. The company also conducted an ICO, which allegedly "officially registered in accordance with the requirements of the SEC."

The SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering.
 

Robert A. Cohen

Chief, SEC Enforcement Division’s Cyber Unit

As reported, the SEC can suspend trading in a stock for 10 days and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met.

Also earlier this month, the American regulator recommended investors to "be vigilant when considering the possibility of investing in the ICO."