• Sat. May 21st, 2022

US securities regulator adds more digital currency companies to ‘PAUSE’ list

ByHazel R. Lang

Apr 29, 2022

The latest publication from the United States Securities and Exchange Commission (SEC) focused on consumer protection has warned the public about several companies that it does not recognize as registered entities.

First organized in 2007, the list is called “Public Alerts: Unregistered Solicitation Entities” or “PAUSE” list and is updated from time to time. The list informs the public of entities that use misleading information to solicit “primarily non-Americans.” investors. »

In a press release, Jose Rodriguez, deputy head of the SEC’s Office of Market Intelligence, said the regulator is releasing more frequent updates to the list to help consumers become better informed and avoid mistakes. be victims of fraud.

“With [the] publication of the PAUSE list, the Commission continues to take action to protect retail investors. We are issuing an increasing number of alerts to provide valuable information and help investors make informed investment decisions,” Rodriguez said.

Digital Currency Firms Dominate List Update

The latest additions to the list include 58 “soliciting entities”, 11 “genuine business impersonators or usurpers” and one bogus regulator. Among this number, several digital currency companies feature prominently on the list.

The 58 solicitation agencies include names such as 247 Crypto Trade, Crypto-TradingHub, Elite Crypto Mines Inc, Crypto Index Options, and Bitpayfxpro, to name a few. Not all companies are registered with the SEC as required by US securities laws.

The companies on the list also seem fake to a large extent. A typical example is Crypto-trading Hub which describes itself as “the world’s first Bitcoin investment platform”. It claims to have more than 11,000 clients that it negotiates for the use of artificial intelligence (AI) technology.

However, the addition to the list does not mean that the SEC passed judgment on the offer made by the companies. The latest list update made in December also featured several alleged fake digital asset companies. Names such as Superfxtrading and SuperBinance have made the list before.

Notably, the SEC considers even legitimate digital currency companies to be fraught with risk.

Watch: SEC Commissioner Hester Peirce on Bitcoin Association Blockchain Policy Issues

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