Several dubious, misleading and unregistered cryptocurrency traders now fall under the eye of the SEC. Many of them receive warning alerts this Friday, January 22nd.
With the growing popularity of cryptocurrencies and the digital economy market, investors need to watch out for fraudulent activities via the internet in these markets. SEC points out that there are innumerable unregistered accounts that are involved in crypto-mining and trading. These are either impersonators of original business accounts or “misleading” in nature.
There is an immediate need for improved structure and system among cryptocurrency traders to safeguard investors from falling into traps laid for soliciting international customers.
The US SEC Enlists Dubious Cryptocurrency Traders Under The PAUSE List
The US SEC (U.S. Securities and Exchange Commission) is said to have a three-part mission that involves the protection of investors. They maintain a list of all the registered companies and cryptocurrency traders conducting business in the market. This list, also known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list has been designed to identify unscrupulous activities.
The list has currently noted 28 companies which are engaged in fraudulent activities. Around 8 of these companies are involved in the cryptocurrency market. On further investigation, 3 out of those enlisted cryptocurrency traders have been found to be associated with prior frauds and scam.
The US SEC has recently issued warning alerts to those cryptocurrency traders involved n such dubious activities before taking strict, legal actions against these companies.
Among some of the companies that are under the radar of the US SEC are FX Bitcash, AxTrading-Investment, Passive Trade Plan, RetireWell Investors and SmartCoins24. The websites of these companies talk about promising returns to investors with optimum security. However, the SEC notification seems to stir the fraudulent trading furthered by these dubious cryptocurrency traders.