The North American Securities Administrators Association (NASAA) reported that U.S. and Canadian financial regulators have initiated more than 200 investigations into ICO and crypto investment products in the framework of the ‘Operation Cryptosweep’ launched in May. During this time, 47 cases of coercive measures have already been recorded.
Watchdogs face a lot of violating the law in this area, including improper registration of products before they are offered to users. NASAA stresses that even products that have been registered can be fraudulent, so investors should carefully study them before investing.
The work is not yet complete. State and local regulators will continue to conduct complex investigations and implement appropriate measures to build confidence and security in the market for crypto investments. NASAA is also working to raise awareness among industry participants.
WHY IS IT IMPORTANT?
- U.S. and Canada launched ‘Operation Cryptosweep’ to combat fraudulent crypto investment schemes. Members of more than 70 administrative-territorial units of North America take part in operation.
- Regulators of both countries are working together to identify scam projects among crypto startups. According to the regulators, scammers come up with dozens of projects to deceive investors who hope to get big profits from ICO and other investments in cryptocurrencies.
- Representatives of regulators emphasize that not all investments related to ICO or cryptocurrency are fraudulent, but they urge investors to look closely at any project.