In this topic we are talking about SEC warn concerning cryptocurrency exchange regulation, the nature of online trading platform. Also we are talking about the important concideration for Investors Using Online Trading Platforms, and Cryptocurrency market value after the SEC warn.
SEC warn concerning cryptocurrency exchange regulation
SEC in USA announced about cryptocurrency exchange regulation. The Securities and Exchange Commission warns that many exchanges are not in regulation . The SEC also says that online trading platforms in cryptocurrency exchange must have the register. The register is essential and to be in SEC as a national securities exchange, an alternative trading system (ATS) or a broker-dealer.These platforms give investors a kind of un earned safety as considering them exchanges.Many online trading platforms shows the investors as they are in SEC registration, and in marketplaces regulation,but the fact they are not. Also the SEC does its effort to implement federal security laws on the rapidly growing cryptocurrency field. Many exchanges have their rules concerning having new cryptocurrencies, but the SEC does not guarantee that these investments are safe.
online trading platforms
online trading platforms are a famous way for many investors. Through them they can buy and sell digital assets like coins and tokens. The investors can buy and sell these digital assets through Initial Coin Offerings (ICOs). These platforms let buyers and sellers to deal with each other. They give the investors the access to automated systems that display orders price, execute trades. These automated systems also povide data transaction. Many of these platforms provide a mechanism for trading assets that have the security factor under the federal securities laws. Beside these platforms being under the federal securities laws, they must register in the SEC as a national securities exchange . The federal regulatory framework governing make the national securities exchange in registration. The SEC is a federal agency, and it is in charge of protecting investors and keeping orders in markets.
Important conciderations for Investors Using Online Trading Platforms
The federal securities laws and SEC advises the investors to use a platform that is in registration with the SEC. They have to use these platform because many online trading platforms shows investors as SEC-registered and regulated marketplaces when they are not. Many platforms shows themselves as “exchanges”. they let the investors understand that they are in regulation. Also they let them understand that they are with regulatory standards of a national securities exchange. Although some platforms shows that they use standards in digital assets trading to achieve the high-quality in it. The SEC has not a revision about these standards or the digital assets that the platforms select. The SEC does not have a revision concerning the trading protocols that these platforms use, which determine how orders interact and execute. That registration means regulation that is for consumers protection.
Cryptocurrency market value drop
After the SEC warn was published and shared in social media and forums, cryptocurrency market dropped in value. Bitcoin has fallen 7.5% to 9.840 with losses in two days and hits 13%. Also another cryptocurrencies like Ethereum and Ripple have declined, and lose 9%. This fall happens after the Securities And Exchange Commission warn about online trading platform that are not in registration. There are many of national securities exchange have registration such as Chicago Stock Exchange, CBOE Exchange, and New York stock Exchange.