Two ICO projects agreed to register …

Two ICO projects agree to register tokens as securities under pressure from the SEC

Two cryptocurrency startups agreed to register their tokens, which they distributed during initial coin offering campaigns, as securities after Securities and Exchange Commission The United States (SEC) has brought charges against them. Writes about this CoinDesk.

The agency’s announcement mentions two startups – CarrierEQ Inc., also known as Airfox, and Paragon Coin Inc. – who held their token sales last year. Airfox raised $ 15 million, Paragon – $ 12 million.

The American regulator points out that none of the startups registered the ICO as a securities distribution campaign and did not fall under the exclusive conditions.

In addition to registering tokens as securities, both projects will return money to investors, submit periodic reports to the SEC and pay $ 250,000 as a fine.

The SEC notes that this is “the first time that it has applied civil liability on the basis only of the fact that the offer of securities under the guise of an ICO was not properly registered”.

Stephanie Avagian, Co-Head of the SEC’s Enforcement Department, said that her department “made it clear that issuing securities through ICOs requires compliance with the current requirements and rules in accordance with which securities are registered.”.

Two ICO projects agreed to register ...

“These episodes show that those who are about to take a similar step can expect that we will continue to identify violations of federal securities laws when dealing with digital assets,” she added..

The publication also mentions the Munchee ICO, which the regulator suspended in December last year. Like the last two ICOs, Munchee agreed to return the $ 15 million he raised to investors, but this time the SEC decided not to impose additional penalties on him..

Earlier, the SEC accused the founder of the EtherDelta decentralized exchange in servicing securities trading.

Two ICO projects agreed to register ...

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