The Us regulators of the cryptocurrency industry have seen a growing concern in the field. They have warned celebrities, social media, and the sportsmen to restrain from investing in this booming investment opportunity as described by some experts who have invested in the industry. Popular celebrities including Floyd Mayweather and Paris Hilton and many renowned artists have publicly supported the digital currency funding drives which have raised concern to the government and the Securities and Exchange Commission. The SEC warned that this move could lure more innocent people investing in such funds and breaking the laws that govern the selling of securities.
The SEC told everyone supporting the digital crypto-currencies to come out clearly and declare if they are being paid to do so. The crypto-currency has come up with this trending funding drive, the initial coin offering popularly known as the ICO. There are about more than 270 startups who have raised capital through this means in the year 2017 alone as reported by the famous journal, The New York Times. In total, the ICO has raised more than $3bn. The SEC pointed out the ever increasing number of public figures promoting the ICO publicly is a big concern that is worrying.
The sec mentioned that everybody should understand that any coin whether physical or virtual that is bought by investors through the ICO was subject to the US laws and regulations that govern buying and selling of shares and stocks in the mainstream stock market industry. The SEC said that the law is very clear and states that anybody who publicly supports or promotes any security offering being sold in the stock market to disclose their relationship with the company offering security as an investment. Failure to do so, this is considered as a federal crime and is considered as violating the federal securities laws. The SEC also added that keeping quiet while you are aware of such a financial arrangement is a serious crime and is considered fraudulent to the individual who is concerned.
The SEC organization said it would keep a closer look at every individual who is supporting or promoting the crypto-currencies to ensure that laws are not broken in any way. In another news, the SEC cautioned members of the public and investors against listening to these individuals and never try to make any investment decisions basing on the rumors from these public figures. If you are an optimistic investor, you should know that it's not a good idea to listen to anybody because they are influential. You don't know the motive of these public figures when they are doing so because sometimes they are being paid to do so thus misguiding innocent investors who may end up losing their funds.
The body encouraged the investors to do their research and never run to make hasty decisions when it comes to investment decisions. Some of these money making schemes might not be genuine and could lead you to extreme loses.Regulators from other countries like Switzerland, Malaysia, and Britain have also warned their public against the same dangers linked to the ICOs while the financial watchdogs in South Korea and China have completely abolished the scheme altogether.