15 Insights on SEC on Bitcoin and ICO regulations
Oct 02, 2017 Posted / 2618 Views
1. The US Government agencies are looking forward to adopt blockchain technology and bitcoins. In the hope to take these protocols in order to defend the military from counter intelligence, mass hacking campaigns etc from attacks on their systems.
2. The US Government believes that blockchain can assure more security. With the various kinds of threats on the radar, the government believes their greatest supporter might be the blockchain technology.
3. The USA government is not pleased with the idea behind ICO's because it does not have any central body to govern it or any responsible body involved in the procedures. It doesn't want its citizens to rely on such unauthorized ventures, which may get proved risky for them.
4. The ICO's are not regulated well, there is no code of conduct, guarantee, security over the funding processes, that is the main reason why the USA does not want its citizen to fall a prey to such ever changing policies of such organizations.
5. SEC(Security and Exchange Commission. governed by the US) has always been protective about the investors, that is why they impose many ban on various ICO's which have unclear intentions. SEC wants that ICO's must clearly state the points of the procedure so that the investors know what they are exactly buying into. It has already given warning that ICO's which are not registered, have unnamed profiles will become a thing of past quite soon.
6. The US General Services Agency has mentioned the utilization for blockchain technology on their portal. The agency has also been showing its interest in the technology quite openly. The technology can be used in the fields like Federal assistance and foreign aid delivery, Royalties, Smart contracts, Patents, trademarks, and copyrights, Federal personnel workforce data etc.
7. The bitcoin and other virtual currencies are treated as a property by the federal government in terms of tax purposes. All the general tax principles are applied to the transactions based on the bitcoins and other digital currencies.
8. SEC has reduced the market for ICO's in the US , but it has still allowed the US-based companies to collaborate with them outside the US regions.
9. In IPO's, the public offerings are sold to institutional investors, and in turn, they sell it to the general public, which becomes a public sector company.
SEC has always encouraged IPO's instead of ICO's, because of the regulated bodies governing them, providing investors with low risks.
10. With the SEC decision to regulate ICO's, the investors have shifted their eyes from USA to Asian markets. Asian countries are liberal with the thoughts of cryptocurrencies, where a Chinese bank has decided to launch its own cryptocurrency in near future.
11. A number of members of the US Congress have been drafting legislation that is planned to identify certain digital currencies and guard them against intrusion from the federal government of the US. The bill will spotlight on how to make the digital currencies as part of the conventional form of payments being used in the country like the Dollar.Amongst the proposals are to shelter the virtual currencies against persecution from the federal government,to defend the transactions using the currencies against taxation and to prevent the currencies from being considered as a form of security or investment
12. The US government has always been sceptical about the Bitcoins because of the volatile nature and various risks related to the digital currencies. That is why the government have imposed so many restrictions over the usage of Bitcoins
13. Around March this year, the US SEC on Friday rejected a request to enlist what could have been the first US exchange-traded fund built to track bitcoin. Based on the records before, the Commission thinks that the majority markets for bitcoin are unregulated, the Winklevoss twins were trying from past three years to convince the SEC and to bring bitcoin ETF to the markets.
14. The MAS(Monetary authority of Singapore) issued a statement similar to the US SEC that ICOs are vulnerable to money laundering and terrorist financing due to the anonymous nature of these transactions.MAS had published a statement in 2014 saying that while digital currencies were not regulated, intermediaries or exchanges would be regulated for money laundering and possible terrorist financing.
15. US SEC wants its market to rise capitally, but their priority is to protect the investors against frauds, scams, money laundering etc. issues, which is why they have not supported the unregulated, decentralized bodies of ICO's to enter in the US market, to avoid such financial calamities in the future.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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