Crypto Crackdown from the NASAA Continues
The NASAA Administrators Association announced that they’re currently investigating 130+ cryptocurrency-related criminal cases. Already in the first eight months of the year, thirty-five enforcement actions have been implemented by the association. This is a significant jump in comparison to the same period last year.
The investigations are in connection to Operation Crypto Sweep, which began in 2018. Coordinated efforts amongst law enforcement and regulators are allowing for legal actions to be taken against these criminal proceedings. Currently, there are more than forty financial regulators in the USA & Canada working in these coordinated investigations.
The NASAA hasn’t just been investigating firms of security fraud, but also multiple other violations relating to financial regulation. One of the more noteworthy violations they’ve found is firms’ refusal to register new products before provided to traders. Furthermore, the administrator is concerned about the upcoming Libra Coin from Facebook. It’s estimated that crypto-related criminal cases will skyrocket in the next 24-months due to Libra. The social media company is unknowingly creating a market space that attracts white-collar criminals.
Crypto Firms Leaving.
The NASAA has implemented a task force that investigates initial coin offerings and cryptocurrency products. Quickly, the new task force has already found thirty thousand websites relating to cryptocurrency investing. Most of these sites were built in 2018 & 2017. This has prompted regulators around the world to be more consistent with regulations. Counties like the United States, Switzerland, Malta & many others have begun revising their laws for cryptocurrency. This has prompted multiple firms to leave these markets for foreign nations like Nigeria or the Philippines.
The Chief of the NASAA stated: “Investors should be mindful of the risks with any investment opportunity. Be cautious when dealing with promoters who claim their offering does not have to be registered with securities regulators. Investigate before you invest and contact your state or provincial securities regulator with any concerns before parting with your hard-earned money.”