The Commodity Futures Trading Commission (CFTC) of the United States recently issues another warning to consumers in which it is advising them to exercise caution and carry out comprehensive research before investing in digital currencies – even if they are ones advertised as utility coins or consumption coins.
The alert came in the form of a Customer Advisory warning posted on the CFTC website this Tuesday. It is the 4th warning released by the regulatory body when it comes to cryptocurrencies and digital assets.
The purpose of this notice, according to CFTC, is to enlighten potential investors about the existing risks and threats in the cryptocurrency market. It has a title “Use Caution When Buying Digital Coins or Tokens,” and with that, it encourages customers to thoroughly research all claims, especially the ones made by initial coin offering (ICO) promoters.
The Director of the Office of Public Affairs and Office of Customer Education and Outreach at CFTC, Erica Elliot Richardson, made an official statement about the new regulatory effort, stating:
“This advisory is part of the CFTC’s education and outreach efforts to help educate and inform market participants, who, given the pace of technology-driven change, will increasingly come in contact with new financial products and services. The CFTC’s Office of Customer Education and Outreach closely coordinates with LabCFTC in order to keep pace with developments in the markets the CFTC regulates, and we look forward to staying ahead-of-the-curve in providing customers the information they need to protect themselves against fraud or manipulation in the marketplace.”
So, what we can conclude is that CFTC’s latest advice is for investors to be wary of coins and crypto schemes that overpromise or guarantee future value or return. The customers, on the other hand, are advised to view any such advertising as an investment red flag.
Previously, the CFTC has put three different warning notices about cryptocurrencies, including a warning about pump-and-dump schemes through crypto exchanges as well as a warning about coins and schemes advertising themselves as “IRS approved”.
UK Research Shows That Private Blockchains And New EU Privacy Rules Might Go Well Together
“There is a risk that this legal uncertainty will have a chilling effect on innovation, at least in the EU and potentially more broadly. For example, if all nodes and miners of a platform were to be deemed joint controllers, they would have joint and several liability, with potential penalties under the GDPR.”However, blockchain operators could be treated like processors the same way the companies behind cloud technologies control the users’ data. Blockchain networks could store personal data externally to meet the rules of the privacy laws or allow nodes to delete the private key that has encrypted information. GDPR rules are really hard to comply with especially for crypto mining businesses which are why the researches urge the European Data Protection Board to create a guide of the protection law that will be clearer.
Thailand’s Deputy PM Calls For Enhancement Of Cryptocurrency Regulations
“The Revenue Department will waive value-added tax for people trading in cryptocurrencies on exchange markets approved by the Securities and Exchange Commission (SEC),” stated an excerpt of a report at the time.With this, the tax proposals of Thailand's Ministry of Finance also generated controversy over the fact that firms raising funds via ICOs would also be required to pay income tax on those funds.
$68 Million Worth Of Illegal ICOs Brought Down By The SEC Last Year
"Given the explosion of ICOs over the last year, we have tried to pursue cases that deliver broad messages and have the market impact beyond their own four corners.’’In the report also, the Division of Enforcement as a part of the SEC formed a new Cyber Unit that helped this agency focus on cyber-related misconduct. For this reason, the Commission managed to bring down more than 20 cases including those involving ICOs and the Division opened more than 200 cyber-related investigations some of which are still ongoing. Further, in the SEC report, we can read that:
"While many of these cases have involved allegations of fraud, the Division also has pursued enforcement actions to ensure compliance with the registration requirements of the federal securities laws. In the past year, the Division has opened dozens of investigations involving ICOs and digital assets, many of which were ongoing at the close of FY 2018."The Securities and Exchange Commission is now going after other crypto-related entities and startups that are unregistered or show up as unregistered brokers that facilitate token sales.
Full Scale Adoption: Ukraine Plans To Move Forward With Crypto Legalization
“They aim to determine guidelines for token classification. Additionally, they will be touching upon issues that relate to smart contracts and cryptocurrency mining. Therefore, this work will be ongoing. There will be two separate stages to the implementation of this new state policy. The hope is to have this policy in full effect by 2021. In addition to the new state policy, the government notably has brought in a new taxation bill. This outlines a new 5% tax that is payable by entities and individuals with cryptocurrency holdings.”Currently, both the opposing and the ruling party of Ukraine are positive on the long-term growth of the cryptocurrency sector and the blockchain technology.
Join us on Facebook
- ECB Board Member: Bitcoin Is ‘The Evil Spawn Of The Financial Crisis’
- 5% Of Moscow Residents Who Use Non-Cash Methods Are Open To Using Cryptocurrencies
- Crypto Market Capitalization Has Fallen To A New 2018 Low
- About 1% Of The Total ETH Supply Is Locked In The MakerDAO Smart Contract
- Bitcoin Drops 11% In 24 Hours, Sinking To A New Yearly Low
UPCOMING EVENTS RECOMMEND BY DC FORECASTS
wed05dec9:30 am5:30 pmDigital Asset Investment ForumExploring the Emerging Asset Class.9:30 am - 5:30 pm The St. Regis Washington, D.C, 923 16th and K Streets, N.W., Washington, District Of Columbia 20006 USA
Altcoin News3 days ago
Australian Exchange Co-Founder: ‘Stablecoins Are A Game Changer’
Bitcoin News4 days ago
Bitmain Releases The Antminer S15 Bitcoin Mining Chip: How It Ranks Among The Competition
Bitcoin News4 days ago
20% Of UK Residents Think that Bitcoin Will ‘Inevitably’ Be As Common As Cash
Altcoin News3 days ago
CEO Of Binance Thinks That Market Is Still In A Good Position, Crypto Volume x2 Larger Than Stats
Blockchain Archive4 days ago
Bitcoin Press Release Distribution Service | DC Forecasts
Altcoin News3 days ago
CFTC With A Fine Of $1.1 Million To Crypto Fraudster
Blockchain News2 days ago
Iran Gets Removed From SWIFT, Considers Switching To Crypto As Planned
Blockchain News4 days ago
January 16th: The New Goal For Ethereum’s Constantinople Blockchain Upgrade Launch