• The US Securities and Exchange Commission (SEC) has recently issued a stern warning to crypto firms, following the action taken against Kraken for offering unregistered staking services.
• SEC chair Gary Gensler has warned that any unregulated crypto firm will face heavy fines and possibly even have their operations suspended.
• Gensler has urged crypto firms to register with the SEC in order to remain compliant with US laws and protect investors from fraudulent activities.
SEC Issues Warning To Crypto Firms
The U.S. Securities and Exchange Commission (SEC) recently issued a stern warning to crypto firms, following the action taken against Kraken for offering unregistered staking services to US investors. SEC chair Gary Gensler warned that any unregulated crypto firm will face heavy fines and possibly even have their operations suspended if they do not comply with US laws.
Kraken Fined $30 Million For Unregistered Services
The SEC fined cryptocurrency exchange Kraken $30 million for offering unregistered staking services to US customers without registering with the regulatory body first. This move was part of the SEC’s mission to protect investors from illegal and fraudulent activities in the cryptocurrency industry, making it clear that exchanges must abide by all applicable regulations or face hefty penalties.
Crypto Firms Urged To Register With The SEC
Gensler urged crypto firms to register their businesses with the SEC in order to remain compliant with US laws and protect investors from fraudulent activities. He also criticized many crypto projects‘ business models as being „rife with conflict“ and needing „disentangling“ bundled products in order to be compliant with regulations.
SEC Taking Lead Role In Protecting Investors
The SEC is taking a leading role in bringing greater transparency and legitimacy into the cryptocurrency industry by ensuring that investors are protected from frauds and illegal activities being carried out by some unscrupulous players in this space. Through its recent fine on Kraken, the regulator has sent out a strong message that it won’t hesitate to take action against those who don’t follow rules set out by them for running an ethical business within the sector.
It is clear that the U.S Securities and Exchange Commission is taking serious steps towards protecting investors from illicit activity, therefore it is important for all crypto companies operating in America or dealing with American citizens’ funds or data should ensure they are registered properly before proceeding so as not fall foul of these stringent regulations enforced by regulators like The SEC, CFTC among others