Today, in a statement published on its webpage, the SEC (Securities and Exchange Commission) has announced that every crypto exchange must be registered as a traditional exchange from now on.
The statement crowns the latest onslaught from the government watchdog on crypto-related businesses and exchanges. The definition of “security” is paramount here, because the classification of every exchange depends on it, according to the document. “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”.
This marks another phase in a change of paradigm from the SEC, from only promoting light touch regulation and publishing statements warning users about cryptocurrencies not being regulated, to subpoena every ICO to be released in the next months.
The statement did not offer details about the timeline for crypto exchanges or ICO’s to register. With some ICO’s not even being able to inform clients about possible refunds, this measure could protect users in the near future.