Cryptocurrency

Cryptocurrency sheds massive value after SEC warning

Cryptocurrencies suffered a severe blow yesterday when the U.S. Securities and Exchange Commission (SEC) warned that cryptocurrency exchanges need to get registered.

After this strict statement, Bitcoin’s price dropped by 10% reaching a low of $9,500, while now it has slightly recovered the price and trading at $9,773 (as of writing). Meanwhile, Ethereum fell by 7.55% to $756.29, now trading at $745.86 and Bitcoin Cash dropped by 9.14% to $1,095.77. Ripple also dropped by 7%, while now trading at $0.84.

See Also: Bitcoin’s price may reach $100, says Harvard economist

According to the SEC, cryptocurrencies are considered as securities of investments, because each virtual coin has a value that rises and falls like stock. SEC thinks that many crypto exchanges that swap digital currencies for cash or other coins lie under the “exchange” umbrella, as defined by federal securities laws. These platforms should register themselves as a national securities exchange otherwise they will be exempted from federal protection. As per the statement;

“The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as “exchanges,” which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.

If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”

Cryptocurrencies are decentralized, meaning that there is no central agency managing the money, like a bank. The coins are also protected by cryptography and money can’t be traced back to a specific individual. But the SEC’s new encouragement for trading platforms to register reveals interest of the US government to take benefits from this profitable crypto world.

Sponsored
Sajeel Syed

I am a writer at TechJuice, overseeing IT, Telecom, Cryptocurrency, and other tech-related features here. When I'm not working, I spend some of my time with good old Xbox 360 and the rest in social activism. Follow me on Twitter: https://twitter.com/sajeelshamsi

Share
Published by
Sajeel Syed

Recent Posts

VPN Ban Could Cost Pakistan’s IT Industry $1 Billion, Warns P@SHA

The Pakistan Software Houses Association (P@SHA) has raised alarms about the severe impact of the…

7 hours ago

WhatsApp Trials Group Chat Mentions in the Latest Status Update Feature

WhatsApp is rolling out a new feature in its latest Android beta version, allowing users…

7 hours ago

PTA Chairman Confirms No Orders for Mobile Service Shutdown

ISLAMABAD: Chairman of the Pakistan Telecommunication Authority (PTA), Major General (retd) Hafeez-ur-Rehman, confirmed that no…

8 hours ago

35,000 Students to Receive Free Laptops Under Punjab Government Scheme

Punjab Chief Minister Maryam Nawaz Sharif has announced the launch of a new initiative aimed…

8 hours ago

Meta Introduces New Features to Messenger: AI Backgrounds, HD Video Calls, and More

Meta has unveiled a set of new features for Facebook Messenger, designed to improve call…

10 hours ago

PTA Seeks Stakeholder Input on VPN Registration

Islamabad (21st November 2024): PTA hosted a stakeholder consultation on VPN registration, with key participants…

11 hours ago