Bitcoin, Crypto currency, Blockchain

With a judicial assistance: the SEC and CFTC against crypto-Scams

The two U.S. regulators, the Security and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to initiate a common procedure against the platform 1broker.com . The CFTC also receives before the court the green light to against other alleged Scams. Thus, both the authorities bring in a regulatory Affairs position.

According to a press release of the Security and Exchange Commission (SEC) of the United States, has taken the authority to take legal steps against 1pool Ltd. a/k/a 1Broker. The platform and its CEO Patrick Brunner is accused of a violation of the securities laws of the United States. Also, the Commodity Futures Trading Commission (CFTC) supported the action.

1Broker.com – No registration as a stock trader

1Broker.com a Marshall Islands-registered Start-up that allows its customers the financial market, investments in Bitcoin. So the customers could invest with Bitcoin in the form of securities or shares, without having to previously Know-Your-Customer verification (KYC) or anti money laundering policies. A password-secured Account sufficient to Transact business.

The allegation that the SEC and CFTC the platform, 1Broker, and the Austrian CEO Brunner, is the sale of so-called Security-based Swaps (SBS), without the necessary registration. As the SEC indicates, had even been a Special Agent in the System is introduced. This could easily acquire SBS with Bitcoin, without the need for a legal framework to adhere to.

The court supports the competence of the CFTC

The Commodity Futures Trading Commission is also the same time against a different suspicious crypto Start-up. The provider of the doubt crypto currency My Big Coin in suspicion of six millions of US are liable to have dollars embezzled. The release, to investigate the case, only the CFTC’s ride this week before a U.S. Federal court.

By the court confirmed the jurisdiction of the CFTC for the case, assigns it to the crypto currency My Big Coin as a Commodity (Good/goods). This classification is done in contrast to the Security (securities), which falls within the jurisdiction of the SEC. It weaves the thoughts of the judges, so also in the case of other crypto-currencies to the classification as Commodities.

Here, the Absence of a clear regulation of crypto is revealed, once again, currencies in the United States. Accordingly, it is left to the two regulatory authorities, the crypto-market via Definition as Security and Commodity share, based on the Judgments of the courts. A permanent satisfactory solution is different.

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