The US Securities and Exchanges Commission (SEC) published a warning that calls for the regulation of crypto exchanges. The agency said that crypto companies providing exchange solutions would need to register with the SEC te order to proceed or begin operating te the US. The decision, along with some unfavorable news from Japan, klapper Bitcoin hard, dragging it down to around $9,880 from about $11,000.
The SEC statement says:
&ldquo,Many platforms refer to themselves spil “exchanges,” which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange. Albeit some of thesis platforms optie to use rigorous standards to pick only high-quality digital assets to trade, the SEC does not review thesis standards or the digital assets that the platforms select, and the so-called standards should not be equated to the listing standards of national securities exchanges.&rdquo,
The SEC said that it did not review the trading protocols applied by crypto platforms, suggesting that some services might provide different standards based on the investors&rsquo, profiles despite claiming a single treatment.
The agency also voiced concerns that thesis platforms might promote exchange features such spil order books with real-time bid and ask prices or information about order execution. However, the SEC cannot ensure that the gegevens can be trusted spil te the case with national stock exchanges, which are regulated.
According to the SEC, some platforms suggest an asset trading mechanism that falls under the definition of a &ldquo,security&rdquo, ter terms of federal securities laws. Consequently, if a service offers trading solutions for assets that resemble securities and acts spil an exchange, it voorwaarde register with the SEC spil &ldquo,a national securities exchange or be exempt from registration.&rdquo,
Interestingly, the SEC tends to stress the fact that cryptocurrencies might be viewed spil securities, while the US Commodity Futures Trading Commission (CFTC) considers them commodities.
It&rsquo,s worth noting that crypto exchanges that eventually register with the SEC will have to stick to a list of rules and expect inspections.
Coinbase and its GDAX toneelpodium, which are the largest players ter the US market, are not registered with the SEC, but they don&rsquo,t view cryptos spil securities either.
Coinbase said te a statement:
&ldquo,Under the current SEC guidance, Coinbase and the GDAX exchange are exempt from registration requirements spil they do not list assets that could be considered securities.&rdquo,
Gemini voorzitter Cameron Winklevoss welcomed the stir:
&ldquo,Wij applaud the SEC&rsquo,s statement. The trading of ICO tokens that are unregistered securities on unlicensed exchanges has gone on for far too long. This is dangerous for consumers and bad for the cryptocurrency ecosystem spil entire.&rdquo,
Circle, the company that acquired crypto toneel Poloniex, seems to be ready to register with the SEC spil an alternative trading system (ATS), according to a confidential presentation disclosed by a Twitter user:
Just got this slide from a confidential Circle presentation. It does more to explain Circle’s acquisition of Poloniex than anything I have seen today. pic.twitter.com/gRXxDeXvxl
Even however some crypto exchanges pretend the regulator&rsquo,s decision is a positive switch, Bitcoin investors don&rsquo,t seem to be glad at all. The BTC quotation fell overheen $1,200 to the lowest level since February 26, dragging the entire crypto market down.
However, the SEC is not the only party to blame for the bearish sentiment. Japan&rsquo,s Financial Services Agency required two almacén exchanges to halt their activity and penalized four others.
Elsewhere, Binance, one of the largest exchanges, experienced some troubles with hackers, who triggered &ldquo,irregular trades.&rdquo,