Operation crypto sweep: NASAA takes 200 ICOs under the magnifying glass

The canadian investor protection organization North American Securities Administrators Association (NASAA) has ICOs to a critical examination. A special Task Force by the Initial Coin Offerings (ICOs) lights with the objective to expose fraudulent projects. In almost 50 cases, has been used by.

That ICOs are a delicate matter, should apply in the crypto-space, in the meantime, as a truism. They offer Start-ups an effective financing instrument. The lure, of course, black sheep. In order to protect ICO investors interested in front of these, called the NASAA in may, the project "Operation crypto sweep".

“state and local securities regulatory authorities a set of extensive regulatory means to investors to protect against financial damage caused by fraudulent ICOs and crypto-currency-related investment products, and the representatives of the industry for their regulatory tasks,”

raise the awareness of NASAA President Joseph P. Borg said in a statement on 28. August. Accordingly, about 200 ICOs and crypto-related facility are currently illuminated products in the United States and Canada by the respective competent authorities. The regulators have taken in almost 50 cases, already measures in the Form of injunctions. While it is representative of most of the companies concerned rather obscure industry, is represented with USI-Tech a company, all the unfairness, at the time, to dubious prominence came.

the Bigger names to be found on the NASAA list with companies of which the organization calls "Information Demand Letter" for more information on their business activities. In the Letter that, in April of this year, well-known Trading platforms such as Binance, Bittrex and Houbi was directed, it is called:

“Institutional investors demand from private trading platforms, [ ... ] reliable information about their business activities, policies, and internal control mechanisms, so that they can assess the risks of trading on a specific platform.”

The enclosed questionnaire consists of eight topics, and reminded of the requirements of the U.S. securities and exchange Commission SEC in relation to Bitcoin ETFs. The leitmotif of the questionnaire transa-transparency and investor protection.

Due to the existing regulatory uncertainties also honest provider of ICOs expose themselves to substantial jursitischen risks.

“Although not every ICO or crypto currency related investment is a fraud, it is important that individuals and companies that sell these products are not aware that you do this in a vacuum; it is state and provincial laws or regulations may apply, in particular, the securities laws”

it is in the NASAA-communication.

Especially, if the ICO doesn't advertise, to fall under the Registration requirement for securities and not according to wealth or investment experience, an investor asks, should the potential investors to sound a note of caution.

“Do your homework and contact your state or regional securities regulators, before parting with your hard – earned money- then it may be too late,”

appealed to NASAA President Borg at the end of the message. To this appeal you can connect only.