NASAA warns investors against cryptocurrencies and ICO

nRunaway Comment: North American Securities and Exchange Commission (NASAA) issued a warning recently to remind people to carefully consider their risks before investing in encrypted currency, can not blindly chase the trend. The notice received the SEC’s appreciation that U.S. regulators are increasingly paying attention to the regulation of cryptocurrencies. As this emerging market continues to grow, its regulatory needs will become increasingly apparent. Perhaps we will see in 2018 that some regulatory measures have been truly deployed.n
nTranslation: Inan
On January 4, the North American Securities and Exchange Commission (NASAA) warned ordinary investors of the risks associated with cryptocurrencies and ICOs.n
After the notice was issued, the Securities and Exchange Commission (SEC) issued a statement immediately followed by praising and reiterating NASAA’s warning.n
NASAA’s circular encourages investors not to look at the heat when it comes to cryptocurrencies and their derivatives and to better understand the risks associated with them.n
Joseph P. Borg, chairman of NASSA and director of the Alabama Securities Commission, said in the circular that “n
n”Investors can not just see the popularity of cryptocurrencies, but also understand the risks associated with investing in financial products such as cryptocurrencies and futures.”n
nBorg also pointed out that the volatility of the cryptocurrency market will attract new investors to invest in such activities that they do not quite understand.n
“Encrypting money-related investments Recent intense price volatility and speculation can easily foster unsuspecting investors into what they might not understand.”n
NASAA’s circular covers a series of widespread concerns about cryptocurrencies and warns people to beware of the most likely fraud in such investments.n
Both NASAA and the SEC describe the difference between cryptocurrencies and “traditional currencies” (legal currencies). Both organizations point out that it is these differences that make cryptocurrencies high risk. NASAA’s statement states:n
n”Unlike the traditional currency, which has no physical form and generally no tangible assets, these currencies are not guaranteed or controlled by the central bank or other government agencies, can not be exchanged with any commodity, and are virtually unregulated.”n
nThe statement concludes with five potential signs of fraud in cryptocurrencies, including high-yield promises, unlicensed sellers, quick purchases, and most of 2017’s ICOs.n
The SEC’s support for the NASAA statement and its earlier statements on cryptocurrencies and ICOs show that the United States is increasingly paying attention to the regulation of cryptocurrencies.n
As the cryptocurrency market continues to grow and attract more attention, the risks it poses for first-time investors will also alert and consider regulation to more government agencies around the world.n

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