US watchdog warns of risks of buying cryptocurrency securities | – #watchdog #warns #risks #buying #cryptocurrency #securities

March 23 (Reuters) – Thursday USA Securities and Exchange Commission crypto asset securities offer of firms that do USA The investor warned that it may not comply with the laws.

According to the SEC, unregistered offerings of such securities may not provide information, including audited financial statements, necessary for making informed decisions.

The securities watchdog is cracking down on the cryptocurrency industry, which its chairman calls a “Wild West” full of misconduct. His efforts accelerated in November following the bankruptcy of Sam Bankman-Fried’s cryptocurrency exchange FTX.

Cryptocurrency exchange Coinbase ( COIN.O ) announced on Wednesday that it had received a Wells notice — which SEC officials said execution is a formal declaration that he intends to recommend action.

In an investor alert the SEC issued to investors by some cryptocurrency exchanges offer warned of its “proof of reserves” services, which allow users to verify that an exchange has sufficient assets to support clients’ holdings.

“Crypto-asset entities may use these in lieu of audited financial statements to mislead and confuse customers about the security of their assets,” the SEC said.

Reporting by Hannah Lang in Washington; Edited by Richard Chang

Our standards: Thomson Reuters Trust Principles.

Hannah Lang

Thomson Reuters

Hannah Lang covers financial technology and cryptocurrency, including the businesses that drive the industry and the policy developments that drive the sector. Hannah previously worked at American Banker, where bank regulation and covered the Federal Reserve system. He graduated from the University of Maryland, College Park and lives in Washington, DC.

2023-03-24 08:14:19
Source – reuters

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