Good day my fellow hivers, i recently thought of sharing to the hive community "some major doings of SEC".
For the past two weeks now, i keep seeing news concerning Securities and Exchange Commission(SEC) having issues with Crypto exchange companies. I don't seems to understand why they are so furious when it comes to crypto related issues, although a friend of mine explained HOW and WHY they work. CoinMe happened to be the new victim of the scandal caused by SEC.
If you've not heard of CoinMe, well let me give a small details about them.
CoinMe is a crypto exchange company in the US, they operate just like Coinbase, Bianance, etc. In addition, CoinMe also invest on Bitcoin ATM machines, where customers can easily exchange their fiat for BTC.
Just few days ago, i got an information which states that SEC has fined CoinMe over $4m for offering out unregisterd securities and also making false statements about it Cryptocurrency UP-token.
CoinMe raised $3.6 million through the ICO of UP. This funds was used in expanding their Bitcoin ATMs, some discount fees and cashback where being promised to UP holders. But as at 2019, CoinMe switched to the popular Coinstar's kiosks machine thereby not giving UP holders their benefit as promised.
Unregistered securities are stock that don't have an effective registration statement on file with the Security and Exchange Commission(SEC).
SEC has ordered CoinMe, Up Global and Neil Bergquist to dispose any UpToken in their possession.
Any form of cryptocurrency security offering is forbidden among all three parties, And also Up Global and CoinMe must publish a notice about the order and request that other trading platforms should remove the token from their services. They are also forbidden from participating in any cryptocurrency security offering.
The fines where shared among the three parties, with Up Global paying $3.52M, CoinMe paying $250K, and Bergquist paying $150K. With all this fines and sanctions, price of Up Token has dropped drastically.
In conclusion
All this reports coming from CoinMe isn't good, but i think SEC is just being too strict with Crypto exchange Companies.
Cryptocurrency is too broad for a particular organisation to control and make full decisions for.
Thanks for reading my post, please do well to follow me for me post updates
