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Commodity Commission CFTC New Warnings Against ICO’s

Recently, several warnings were sent out and issued caution regarding certain ICO’s and digital currencies, stating that possible investors and those looking to purchase should do proper research prior to any action involving funds.


Warning

The CFTC’s warning, advising caution when purchasing digital assets, reflects previous warnings issued by the United States SEC. Among its most distinguished advisory announcement is the HoweyCoin, a fake initial coin offerings site which cautioned investors and educated them on certain scams and threats related to purchasing tokens while also highlighting those promising huge paybacks.

As of now, the Securities and Exchange Commission has been handling several digital assets that qualify as non-securities and violate the regulations in place. On the other hand, the CFTC is yet to decide on which assets the trading commission will be regulating. It adds that cryptocurrencies may be considered as commodities given their development and status. 

The CFTC in 2015 stated that digital coins do qualify as commodities and as results indicate so far, certain digital assets as of today may be considered as commodities, predicted by the CFTC three years ago. The agency has long been focused on publicly displaying its anti-fraud operations in the United States.

Many lawsuits have been filed by the agency since 2018 and as of now, reports stated that the CFTC is part of a constant investigation surrounding digital market scams and fraud.

2 years ago

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