Cryptocurrency issuers clean up, shun U.S. investors as SEC gets tough

Tech start-ups that issue digital tokens to raise funds are falling in line with U.S. securities laws or seeking legal ways to skirt them after the Securities and Exchange Commission (SEC) said it planned to regulate the market.

The issuers are increasingly filing their ‘initial coin offerings (ICOs)’ with the SEC, adding customer checks, barring U.S. investors or halting fundraising after the regulator said it will hold most token offerings to the same standards as share sales, more than a dozen ICO lawyers and executives told Reuters. “It’s better to pay the cost upfront than to have the SEC come after you and shut you down,” said Armin Ebrahimi, CEO of Silicon Valley-based ShoCard which is preparing for an ICO in May.

Reference: https://www.investing.com/news/technology-news/cryptocurrency-issuers-clean-up-shun-us-investors-as-sec-gets-tough-1352925

Share this: