Question

Cryptocurrency and Initial Coin Offering are unique investing tools. How does the SEC view these two instruments? Use the SEC’s website to find relevant information about the SEC’s stance on these instruments. Support your discussion with relevant citations from the SEC.

Answer 1

solution:

SEC's View on the accompanying:

Cryptographic money

SEC alludes to Cryptocurrency as Virtual cash

A Cryptoccurency is made utilizing a dispersed record otherwise called the blockchain innovation

Blockchain is a computerized record kept up by the system members, it utilizes cryptography to verif the exchanges. Henceforth, a money made utilizing this innovation is alluded as Cryptocurrency

Crypotocuurency can be issued by Individuals or associations utilizing ICO (Initial Coin contributions) to raise capital

It is an advanced portrayal of significant worth that can be carefully exchanged and speaks to a specific characteristic esteem and can be utilized to make buys

Digital money can play out every one of the capacities a fiat cash (eg: USD, INR and so on.) can do however is isn't sponsored by the administration or some other body

Benefits - 1) can make exchanges without geographic obstructions 2) Lower exchange costs when contrasted with traditional strategies 3) Transactions can be confirmed openly.

Negative marks - 1) Have considerable hazard in type of hacking 2) There is no administration backing 3) Since, no focal specialist investigates it, it makes it difficult to follow exchanges 4) It is hard for Law requirement offices to Freeze Virtual money

ICO(Initial Coin Offering)

ICO is utilized to raise capital by people and enterprises by means of cryptographic money

The contributions might be enlisted under SEC on the off chance that it pursues certain qualities

Data of an enrolled offering can be found under shape 1 at SEC site through EDGAR

SEC has exhorted alert in the event that the offering isn't recorded

ICO's portrayed as crowdfunding contracts may not pursue controls necessities o

thank you.