As a result of the operation codenamed "Cryptosweep", organized by the North American Securities Administrators Association (NASAA), US and Canadian regulators initiated more than 200 investigations into ICO and investment products based on cryptocurrency. This is reported by CCN.
As reported on the website of the organization, during the "Cryptosweep" the association found a lot of schemes that violate federal and regional laws in the sphere of securities. Among the violations noted sale of cryptocurrency products unregistered properly.
State and provincial securities regulators are committing significant regulatory resources to protect investors from financial harm involving fraudulent ICOs and cryptocurrency-related investment products and also are raising awareness among industry participants of their regulatory responsibilities. 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.
Joseph P. Borg
President, NASAA and Director, Alabama Securities Commission
According to him, even proposals that meet the regulatory requirements may be fraudulent.
The program by NASAA was launched in May. Over this time, the association has identified over 30 thousand domain names associated with cryptocurrencies. Most scammers used fictitious addresses and guaranteed daily income to 4%, while not mentioning the possible risks for investors.