United States regulator the Securities and Exchange Commission (SEC) is seeking a business to provide data for the “most widely used” blockchains in order to “monitor risk and improve compliance” surrounding cryptocurrencies.
The SEC published a solicitation notice on Thursday, in which it states that the regulator requires blockchain data that is “easily reviewable” to ensure “there is no loss in data completeness and accuracy due to the data transformation tools and processes applied.”
A deadline of February 14th has been set for hopeful businesses to put forward potential solutions. The latest move by the SEC could be the beginning of “phase two” of the cryptocurrency clampdown.
Our exam priorities for this year:
1. Compliance & Risks in Critical Market Infrastructure
2. Retail Investors, Including Seniors & Those Saving for Retirement
3. FINRA & MSRB
5. Anti-Money Laundering Programs
More on these priorities: https://t.co/Lyg6kRhZBG
— SEC_News (@SEC_News) February 3, 2019
A number of blockchain start-ups in the US have already felt the regulatory power of the SEC in the last six months, with the likes of Airfox and Paragon being forced to register as securities while EtherDelta founder Zachary Coburn received a penalty.
Of their 2019 examination priorities, the SEC said that cryptocurrencies would be at the top of their list, especially “concerns related to custody and safekeeping of investor assets, valuation, omitted or misleading disclosures regarding the complexities of the products and technology, and the risks of dramatic price volatility.”
The general consensus in the cryptocurrency space is that 2019 will be the year of regulation, with a predicted purge of dishonest ICO projects and Ponzi schemes.
Removal of such illicit projects from the cryptocurrency space may allow the truly innovative projects to continue developing, thus increasing adoption and open interest in the markets.
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