the In the Wake of the sentencing of Floyd Mayweather and DJ Khaled of the U. S. Securities and Exchange Commission (SEC) reaffirmed its attitude towards the Initial Coin Offerings (ICOs). Influencer, not sign of promotions for ICOs, as such, must reckon with criminal prosecution.
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3. December 2018 share Facebook Twitter LinkedIn xing mail
Social Media Influencer should in the future prefer to let the fingers of applying shady ICOs. Because, as SEC Enforcement communicates via Twitter, wants to create the authority in relation to celebrities ICO-promoters tougher bandages.
2/2 … Social media influencers are often paid promoter, not investment professionals, and the securities they’re touting, regardless of whether they are issued using traditional certificates, or on the blockchain, could be frauds.” https://t.co/WzgvPU7Esg
SEC Enforcement (@SEC_Enforcement) November 30, 2018
Freely translated, the Tweet reads as follows:
“In Social Media-Influencers are often paid advertisers and not to professional investors. The advertised value of assets, regardless of whether it is traditional certificates or Blockchain Assets could always be fraudulent projects.“
In this context, also see the Floyd Mayweather and DJ Khaled set an example. The sec accused the US celebs unfair promotions for a doubt before ICO. Specifically, failed, the Influencer, your salary for the advertising to be disclosed, as it is said on the part of the SEC.
Because high-reach posts of Celebrities “give, in principle, the impression to be a impartial opinions and no paid advertising measures”. This type of deception is a criminal offence, the SEC.
2/2 … With no disclosure about the payments, Mayweather and Khaled’s ICO promotions may have appeared to be unbiased, rather than paid endorsements.” https://t.co/f18nn5Jxjc
SEC Enforcement (@SEC_Enforcement) November 30, 2018
in order for Influencers to make, however, is punishable by law, have to apply the advertised ICOs expressly as Securities. Only then can the typical SEC-securities regulations grab. Like BTC-ECHO already reported, a assigns the sec, in the meantime, however, a large part of the ICOs in this category.
SEC: ICOs are Securities
Since the beginning of the year, in this reason, hundreds of ICOs in the crosshairs of the authority. Because Securities, as defined by the SEC, must first register at the supervisor. Since ICOs is not assumed previously, however, that your projects of this Definition, the failure of the incriminated projects this formal registration. This is the projects now on the feet.
The assessment of the authority in respect of the legal status of ICOs reiterate the SEC’s Chairman, Jay Clayton, meanwhile, in an Interview with CNBC:
“We do not believe that Bitcoin is a Security. Many of the ICOs, you see, and of which you speak, are Securities. And if you want to offer and sell securities, you must do so in Accordance with our laws. We were aware that the recent actions reaffirm that our securities laws apply in the framework of ICOs. If people with ICOs to collect money you will need to do this either in the context of a private placement, or the SEC, to register.“
The entire Interview is linked here.
SEC cracks down on initial coin offerings
watch This Video on YouTube.
