NASAA Gives Latest Update On Fraudulent ICOs Probe
At least 200 ICOs are under probe by the North American Securities Administrators Association. The investigations which have been declared active will also look into crypto investment avenues. The investigations were launched in a project dubbed Operation Cryptosweep.
The operation was launched in May where NASAA revealed that it will be coordinated by multiple agencies in a bid to crack down on bad ICOs in America and Canada. Immediately it was constituted, the task force swung into action probing numerous crypto products.
On Tuesday, the NASAA issued a press statement where it highlighted the latest progress of the investigations. To date, the authority has approved action to be taken against 46 projects involving ICOs.
NASAA head, Joseph P. Borg said NASAA aim was to protect investors interested in putting their money in cryptocurrencies. He said that the NASAA will put in extra regulatory measures to remove fraudulent ICOs from the market. Borg added that through the operation, NASAA is seeking tosensitize people about the risks involved with bad ICO projects.
Apart from fighting fraud, NASAA will be looking at unearthing possible violations of existing laws. The most common violation is the failure to follow due process in registering crypto products.
Many ICOs are accused of failing to list the products as securities before market roll out.
Borg called on backers of these projects to seek appropriate legal advice to ensure they stay in line with the law.
In the press statement, NASAA reminded participants to register with appropriate regulatory bodies because conducting any investment. Borg pointed out that a registered ICO can still be illegal and it was, therefore, vital to consult authorities before investing.
The revelations come in the wake of a survey done by Satis Group where 80% of ICO was rendered fraudulent. The report, therefore, means that the NASAA operation us necessary.
However, investors can stay safe if guidelines by the United States Securities and Exchange Commission are to be followed. The agency calls for alertness in order to spot dangers associated with ICOs. Look for endorsements from prominent people, and the assurance of getting returns. Additionally, the feature of optional credit card should not be taken lightly.