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The "Big Cleanup" action against the cryptocurrency industry by US authorities has been escalating recently. John Reed Stark, a former lawyer at the enforcement division of the US Securities and Exchange Commission (SEC) and former Chief of the Office of Internet Enforcement, believes that cryptocurrency exchanges are "high-risk and unsafe." He is urging investors to quickly withdraw from cryptocurrency exchanges.
John Reed Stark served at the SEC for 18 years. He stated that the enforcement actions taken against Coinbase and Binance by the agency might just be the beginning of a "regulatory siege," and more cryptocurrency companies could be affected in the future. He addressed cryptocurrency investors, saying:
"It's time to leave cryptocurrency platforms now, as clear as day. I think everyone should be aware that cryptocurrency exchanges are under regulatory and enforcement siege in the United States, and this storm is just beginning."
Stark pointed out that traditional financial companies registered with the SEC have unlimited and immediate visibility into all aspects of their operations. In contrast, cryptocurrency exchanges lack any form of supervision or access by the SEC, as well as the ability to detect, investigate, and prevent fraudulent activities. As a result, they operate with minimal regulation.
Moreover, Stark emphasized that, in his view, the SEC's enforcement actions are on the right track, and cryptocurrency exchanges are "high-risk, dangerous, and fundamentally unsafe." Most of these platforms in the United States lack registration and regulation, making them unable to adequately protect investors. |
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Post time 30-3-2024 14:08:37