Bitcoin price is crashing as SEC wants to take cryptocurrency exchanges under control
|- SEC says that all trading platforms for crypto assets shall be registered.
- Markets reacts to the decision by selling digital coins.
The U.S. Securities and Exchange Commission wants that cryptocurrency trading platforms to be registered with the agency as exchanges. The news broke on Wednesday's evening and exasperate the crypto crash, initiated by Binance hack rumors.
“If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration,” the SEC detailed in the official statement.
It means that some of the largest trading platforms for digital assets, including GDAX and Gemini, will have to undergo a registration process, bring their businesses in full compliance with the strict SEC requirements, and be ready for the inspections.
The regulator says that the trading platforms lead customers to believe that they are as safe and regulated as the New York Stock Exchange. But this is not the case, as they are not registered with SEC and thus not obliged to meet the regulatory standards of a national securities exchange.
The US regulator has just taken another step on the way to tightening its approach towards crypto assets, which is in line with global tendencies.
All major cryptocurrencies are in red, as traders are worried by the aggressive approach adopted by the global regulators. While more control will be beneficial to the industry, the initial market reaction is dragging the coins down.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.