A safe haven for everyone in the crypto space would be the rewards to reap from an ongoing ‘operation cryptosweep’ launched by the North American Securities Administrators Association (NASAA).
The body had in April 2018 inaugurated a task force and has since the start of May been preying on cryptocurrency scams and fraudulent initial coin offerings.
So far, the numbers represent an impressive work by the US and Canada regulatory body but clearly underscores the weakest link of digital assets – anonymity.
30,000 crypto related domain names, suspected to belong to sham crypto companies have come under investigation by the movement.
70 new investigations into cryptocurrency fraud and ICO scams has been opened in just 21 days with a further 35 enforcement actions being taken against sham crypto exchanges operating in over 40 jurisdictions across the US and Canada.
In the words of NASAA President Joseph Borg,
‘‘The actions announced today are just the tip of the Iceberg. Crypto-criminals need to know that state and provincial securities regulators are taking swift and effective action to protect investors from their schemes and scams,” he warned.
Even though a report by Satis (an ICO advisory group) suggested that 81% of ICO’s launched in 2017 were scams, Mr. Joseph rightly asserted that there were still legitimate crypto investment opportunities.
“Not every ICO or cryptocurrency-related investment is fraudulent, but we urge investors to approach any initial coin offering or cryptocurrency-related investment product with extreme caution,” he said.
Undoubtedly this move by NASAA would raise public awareness on the existence of very fraudulent crypto investment opportunities lurking around the largely unregulated trading markets. It would also pave the way for investors to meet stellar opportunities.
Crypto exchanges such as Ubcoin, Leverage, Power mining pool, Digital Ticks, and Cryptosecure, all with a handful of users were served ‘Cease and Desist‘ letters by the NASAA task force in this period.
With even seemingly legitimate crypto exchanges coming under the radar, a period of tranquility would not be a far-fetched dream once the ‘operation crypto sweep’ reaches a climax.
But then would this herald the largely expected crypto market boom in 2018?