Bitcoin price is crashing as SEC wants to take cryptocurrency exchanges under control

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.