UK Watchdogs to Release Cryptocurrency Report

Recognizing that cryptocurrencies do not directly fall within the scope of the Agency, FCA stressed that some aspects of their use are within its competence
09 April 2018   588

According to the plan of the Financial Conduct Agency (FCA) of Great Britain for 2018/2019, it, intends to publish a report on crypto-currencies together with the UK Treasury and the Bank of England. 

Technology plays a pivotal role in delivering financial products and services. It enables firms’ innovation (see the Innovation, big data, technology and competition crosssector theme) and supports their business strategies. New technologies can lead to harm if they are not safely adopted and managed. For example, new technologies such as distributed ledger (blockchain) and artificial intelligence rely on access to sensitive and high quality data. But new technologies present opportunities for helping firms to meet Know Your Customer or anti-money laundering requirements more efficiently.
 

FCA Business Plan

The "key activity" of the innovative FCA program will be directed, among other things, to crypto-currencies - FCA plans to assist the companies with regulatory recommendations, as well as to keep up with new market trends such as "ICO and distributed registry technology."

The FCA report also says that the cryptocurrencies themselves do not fall under their jurisdiction, but some models of using cryptocurrency packaged in other financial instruments fall under it, which makes the overall landscape more complicated.

FCA also notes that it has already begun to regulate work with cryptocurrency derivatives, including futures, contracts for price differences and options.

Agency will continue to monitor parameters such as the number of new entry points to the market and the emergence of new innovative products to understand whether fintech can help "improve competition for the benefit of customers.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   346

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.