The report states further that platforms operating as an ‘exchange’ falling within the definition under the federal securities law and offer trading in digital assets considered securities, must register with the SEC as an exchange for national securities, or they should be exempt from the registration. The SEC stated further that it is concerned about different parties potentially conducting fraudulent or illicit trading through exchanges that are not registered and trade in such ‘securities’ (digital assets). Even cryptocurrency exchanges allowing trading in only high quality cryptocurrencies, the SEC or other regulatory bodies exercise no control over which coins are high quality or qualify for trading.
Bitcoin And Other Cryptocurrency Exchanges Must Register: SEC
The US SEC has come out with a new report saying the cryptocurrency exchanges trading in security tokens must register with it. The report also carries warnings on the dangers of crypto exchanges that are unregulated and states that every trading platform that exchanges digital assets are reckoned
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