New York: US Regulators Consider Tougher Rules for Virtual Currencies
On Tuesday the 6th of February, US regulators shared the views of other officials who believe that they may require new powers to manage cryptocurrencies which present risks that the investing public does not recognize.
Bitcoin and other virtual currencies have seen demand significantly rise in the recent weeks, alongside their value. Unfortunately, however, this has been accompanied by a soar in suspicious investment scams which has instigated increased attention by the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which are the main agencies overseeing the US financial markets.
Jay Clayton, SEC Chairman, believes that digital currencies are often traded on electronic platforms which call themselves exchanges. Clayton also went on to warn that regulators have no way to respond if a cryptocurrency is stolen or if a platform is hacked.
Cryptocurrencies have moved from the forefront of global finance and instead have been used for money laundering, drug dealing and other illicit practices.