SEC Warns Of 'Potentially Unlawful' Online Trading Platforms

Law360 (March 7, 2018, 9:25 PM EST) -- The U.S. Securities and Exchange Commission on Wednesday warned investors that platforms trading digital assets, including red-hot initial coin offerings, may not be registered with the agency and thus do not provide the standard investor protections afforded by securities laws.

The statement, issued by the SEC’s divisions of Enforcement and Trading and Markets, marks the agency’s latest attempt to call attention to "potentially unlawful" activity involving trading of digital tokens that function like securities. The SEC also stressed that if a platform offers trading of digital assets that are securities and it operates as an "exchange" — as defined by federal...

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