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ICO Fraud Prevention Requires 'Thoughtful Approach'.......SEC Director

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The process of approving and monitoring ICO fundraising activities is one that requires continued focus because of its susceptibility to abuse.  SEC's director of Enforcement says the creation of new Unit for ICOs within the Cyber department will ensure continued focus on protecting both investors and market integrity. 

Fireinthebone gathered that the SEC Director,  Stephanie Avakian took the opportunity of the Securities Enforcement Forum on Thursday to give a broad overview of the unit's mission, once again emphasizing that token sales, the process by which startups use custom cryptocurrencies for fundraising, would be a focus.

The cyber unit, first announced late last month, has said it will target "misconduct perpetrated using the dark web," particularly where cryptocurrencies like bitcoin are used.  

As such, Avakian said that the cyber unit was created to consolidate the regulatory body's expertise on cybercrime, and include a focus on blockchain technology, particularly initial coin offerings.

While blockchain technology can be used to raise funds legitimately, it can also be abused, she said, noting that "like many legitimate ways of raising capital, the popular appeal of virtual currency and blockchain technology can be an attractive vehicle for fraudulent conduct."

Referring to a previous SEC report which said digital tokens would be considered the way securities are under U.S. law, she ultimately said blockchain needs a "consistent, thoughtful approach."

Friend, Jesus came looking for you. Give your heart to Him, Love the Lord with all your heart, strength and might.  Love your neighbour as yourself, hold no offence, no bitterness - the Lord is near you to help you!


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