SEC reached a $10 million settlement with Poloniex over regulatory violations
U.S. Securities and Exchange Commission (SEC) today Announce It reached a $10 million settlement with the Poloniex cryptocurrency exchange, which allegedly provided an unregulated digital asset trading platform between July 2017 and November 2019.
The SEC stated that some employees of the cryptocurrency exchange “internally stated that they hope Poloniex will be able to “actively” trade new digital assets on the Poloniex trading platform, including digital assets that may be considered securities under the Howey test,” Efforts to increase market share”, sometimes “in or around August 2017”.
This shows that Poloniex knows that it may have violated financial regulations. As the US Securities and Exchange Commission claimed, “In July 2018, Poloniex decided to continue to provide users of the Poloniex trading platform with trading of digital assets called “medium risk”. Capabilities are considered securities in light of the commercial returns that will be provided to Poloniex.”
In other words, Poloniex employees allegedly seem to have repeatedly admitted that they can trade these digital assets without registering as a national stock exchange or seeking an exemption from the requirement. It seems that they just believe that the potential benefits of supporting the emerging digital asset market are worth the risk of subsequent impact.
Poloniex does not appear to be trying to steal information from its users-this is Surprisingly common Among Cryptocurrency exchange——Or deceive them by Talk about About how rich they can become in the crypto market. The platform is clearly well-intentioned; it does not comply with the regulations governing securities trading at all.
The SEC stated that “Poloniex agreed to issue a suspension order without acknowledging or denying the SEC’s findings” and a settlement of US$10 million.Change found Split out Its parent company Circle suspended trading in December 2019. Accept U.S. customers At that time, this may be the reason why the SEC’s investigation was limited to that specific time frame.
It’s not that Poloniex’s impact on Circle ends in 2019: CoinDesk Report In July, the company lost $156 million in the acquisition of Poloniex and is still processing the SEC’s investigation of these regulatory violations. It is not clear how this settlement will change the company’s situation. The US Securities and Exchange Commission stated that it reached a settlement with Poloniex LLC, rather than with Circle itself.