The Wall Street Journal, citing people familiar with the matter, noted the probe follows warnings from US regulators about initial coin offerings and questioning whether they violate securities laws, according to online publication The Street. The subpoenas include requests for information about the sales and pre-sales of the ICOs, which are not covered by the same regulations that initial public offerings are.
Despite the fact many of the internet-based cryptocurrency trading platforms have registered as payment services, the US watchdog noticed that they are not subject to direct oversight by the SEC or the CFTC. Therefore, tech companies are advised to revisit these frameworks and ensure they are effective and efficient for the digital era.
Nevertheless, lack of transparency and integrity will be prosecuted, the CFTC and SEC concluded.
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