Tuesday, September 27, 2022

SEC Updates List of Misleading Cryptocurrency Companies on PAUSE List

The US Securities and Exchange Commission has just updated its misleading cryptocurrency companies list, which is filed under the Public Alert: Unregistered Soliciting Entities (PAUSE) records.

According to the published post by the regulator, the misleading blockchain firms are categorized under three groups, which are “Unregistered Soliciting Entities”, “Fictitious Regulators” and “Impersonators of Genuine Firms.”

While the reason behind publishing the updated list is basically for information purposes,  the SEC however noted that the listed companies have not posed any known threat to the security of the United States.

In defining the various categories of the misleading firms, the ones that fall under the cadres of “Unregistered Soliciting Entities” are those crypto companies “that falsely claim to be registered, licensed, and/or located in the United States in their solicitation of investors.” 

Fictitious Regulators are those organizations that falsely pose to be a government agency or a regulator, which simply do not exist. While the Impersonators of Genuine Firms are crypto companies that although they are legitimate businesses, have names and websites that are similar to other genuine established organizations just to solicit more customers.

A host of the misleading cryptocurrency firms fall under the category of Unregistered Soliciting Entities, such as 247Crypto Trade, Bitpayfxpro, BTC Investments, Crypto-Trading Hub, Cryptofxtrader, Cryptobravos, CryptoInvestments, Cryptonaryfxsignals Inc., Cryptostocktradefx, Cryptolegaltrade, Cryptoprofits, Inc., CurrencyFX Ltd, Crypto-Forex Trading Ltd, Cryptoindex Options, Crypto Invtwld, Cryptofxearners, and many others.

The SEC further noted in the published post that the list does not consist of all possible misleading crypto firms that are currently existing, hence caution should still be administered in dealing with cryptocurrency companies.

Speaking on the PAUSE list, the acting director of the SEC’s market intelligence, Jose M. Rodriguez said that, added to publishing the list, the SEC will continue to be committed to taking action “to protect retail investors.”

While the Securities and Exchange Commission is yet to approve cryptocurrency as a reliable stock of investment, the commission has often deployed tactical means to protect US citizens from frauds and scams owing to the vulnerability of the blockchain market to various forms of insecurities.

In February, the commission reportedly started investigating the US branch of Binance for allegations of impersonation. This is one of the ways that the SEC has been a competent watchdog for cryptocurrency trading in the United States.

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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