SEC's anti-crypto campaign continues

The U.S. Securities and Exchange Commission has filed charges against Daniel Pacheco, the man behind iPro Network, who promotes business with referral and cryptographic data called PRO Currency.

This is another case that reaffirms the way for regulators to enforce regulations and "eradicate" malignant crypto currencies, exchanges or ICOs. Just as the crypto industry is growing, and threats from it, which the SEC have set themselves the task of preventing and exposing as much as possible.

The Commission reveals that the founders of the company have been attracting investors with promises of innovative financial products by selling them training packages that included e-commerce lessons.

The company has earned more than $ 26 million to fund the development of its sales network based on blockchain technology. The idea was when customers bought goods through the online platform to receive a discount. The iPro Network Compensation Plan contained the idea of ​​recommended investors who invest in the PRO currency at the same time and receive a commission for each new investor who has also bought the currency. Thus, following the investigation, the Commission has announced that iPro Network has been selling derivatives without the necessary registration and licenses. The essence of the violation is that when the company started selling the PRO Currency, they had to register with the Commission. Their digital currency was supposed to be accepted by SEC as a derivative, and the company to register as a broker in the case. After all, the company has encouraged investors to speculate their currency with their crypto, turning only into a pyramid scheme.

So far, the SEC has completed most crypto cases out of court, with the status of digital currencies still "doubtful". However, the Commission warned that it is possible that the laws that apply to financial derivatives should also be fully applied to digital assets, depending on their specification. In this case, the absolute identification procedure - registration, proof of transparency and coverage of regulatory requirements will apply.

Let us recall that the Commission once again delayed its decision whether to allow the creation of the world's first Bitcoin ETF. In addition, the SEC has taken regulatory action against a number of companies, imposing a temporary ban on their activities. In addition, a number of assets and bills have been frozen by several Creep companies, several ICO canceled programs, and suspended digital trading or crypto exchanges.

Source: Finance Magnates

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