Cryptocurrencies have long been nothing new, but the financial world, governments, and regulatory bodies still don’t know how to deal with Bitcoin. In the US, however, there was a blast in this area. Many fans see the future of money in cryptocurrencies, critics and most customers bow to Bitcoin, Ether, and everything they call skeptical.
Because digital currencies still have a reputation of being mainly used for fraud, extortion, and other shady activities. Recently, however, there was a decision by the American federal authorities that could or should have far-reaching consequences: Because how? Wall Street Journal (WSJ) reported that law enforcement officers have joined forces with the U.S. Securities and Exchange Commission (SEC) to denounce the first case of insider trading in cryptocurrencies.
A former Coinbase executive is accused of providing his brother and a friend with inside information. Where Crypto Fans Made Money in 2021 Specifically, the three men were accused of fraud. At the same time, the SEC has filed a civil lawsuit alleging that nine cryptocurrencies, including seven currently available on Coinbase, qualify as unregistered securities.
Cryptocurrencies to face Strict Regulations
The latter could have far-reaching consequences because if the SEC were successful, the crypto industry would have to adapt to numerous legal obligations and new regulatory requirements. Crypto expert and software developer Brianna Wu explains it all in one go tweet “Regulators are now stating that Coinbase’s digital tokens are actually securities and must be registered.
This means crypto scams such as ‘rug pulls’ could now end up with a criminal conviction.” In the case of insider trading, the responsible prosecutor made his agency’s stance clear: “Our message with these allegations is clear: fraud is fraud is a fraud, whether on the blockchain or on Wall Street.”
I’m a communication enthusiast and junior editor-reporter at Research Snipers, I have completed a degree in Mass Communication but am very enthusiastic about new technology, games, and mobile devices. I have the main interest in Technology and games.