ICOs still in the sights of the US stock exchange supervisory authority

The US Securities and Exchange Commission (SEC) continues to take a close look at the current ICO uncontrolled growth in the cryptoscene and is looking for a way to regulate young startup investments.

With the increase in ICO crowdfunding projects, more and more blockchain experts are concerned that the lack of transparency regarding the issuance of such tokens could pose risks to investors. Reason enough for government regulators to address the issue and look for possible ways to regulate and protect investors. A few days ago, the SEC announced that the ICO Token Sales were at the top of the regulator’s radar.

According to Reuters, the Securities and Exchange Commission is now keeping a watchful eye on the sharp rise in ICOs over the past few weeks.

Due to the virtual and decentralized nature of ICOs, such projects can easily be used for money laundering. This is also a good reason for the SEC to take a closer look at the current situation.

A challenge for the regulators of the Bitcoin secret

The problem for the Bitcoin secret regulators lies in particular in the business field in which the blockchain start-ups operate like this: https://www.geldplus.net/en/bitcoin-secret-review/. In a decentralized ecosystem, there is usually no single instance that can be held responsible for the token sale or for the legally compliant output of the tokens. Regulators can currently only use third parties such as wallet providers or Bitcoin exchanges.

SEC is not sure how to handle blockchain and ICOs.
Although the Securities Act of 1933 and the Securities Exchange Act of 1934 broadly define the scope of all „securities“ such as stocks, bonds, futures, swaps, investment contracts and more, there are no regulatory guidelines on how to treat Bitcoin or Blockchain. Therefore, the SEC has decided that companies using blockchain technology to transfer securities must register as stock exchanges or brokers.

Therefore, any blockchain platform that brings buyers and sellers together and exchanges digital assets defined as securities could be required to register.

Fraud & Scam vs. Great Opportunity for Young Cryptosoft Startups

As you can see, it is probably only a matter of time before government agencies like the SEC take the first steps towards regulating cryptosoft ICO token sales. On the one hand, this would help to protect investors who invest arbitrarily in projects that later turn out to be fraud; on the other hand, regulation would probably close the doors to financing for many young block-chain start-ups and nip them in the bud.

Report considers Bitcoin’s anonymity insufficient

A new report by an open source advisory group has now found that Bitcoin users are still facing anonymity issues.

The Open Bitcoin Privacy Project (OBPP) published its study this week. The study is a survey of Bitcoin’s anonymity and privacy in 2016 and identifies vulnerabilities in the ecosystem.

The team consists of developers and scientists from the Bitcoin loophole area

OBPP has previously addressed anonymity and Bitcoin loophole issues and published two issues on the subject in 2015. The new report identifies four key threats that Bitcoin loophole users faced last year. These threats included aggregating co-owner transactions into individual transactions, re-using Bitcoin addresses, tracing a network identity back to specific Bitcoin addresses, and aggregating specific addresses to network activity.

The publication may address a core aspect here based on the Bitcoin. The digital currency provides a pseudonymous, open-access service to send money around the world. For some, financial privacy is the main reason why they have gone digital at all.

Security risks & judicial authorities of the news spy

The report also discusses how security risks can undermine the news spy and what steps need to be taken to mitigate these threats. For example, OBPP recommends the use of the Tor network or similar services. They are designed to route the data through various points around the world to disguise the news spy origin and destination. This is to bypass the fact that an identity is tied to a particular node.

The report appears in the midst of great concerns on the part of governments around the world. Anonymisation skills are a big issue. Last month, judicial authorities, including Interpol and Europol, called for raids on so-called transaction mixers. These tools disguise the origin of transactions before they are linked to other transactions.

In a previous conversation between CoinDesk and OBPP member Kristov Atlas, Atlas said the current status of the ecosystem’s privacy was „pretty bad“. He stressed that the work on wallet anonymity has degenerated over the past two years.

He continued:

„Practical implementations to improve privacy have currently stopped. In general, I would give the industry an insufficient rating.“

From Atlas‘ point of view, the reasons for the weak privacy are particularly regulatory reasons, but also technical reasons, which combine to form a „confluence of challenges“.

Leaving out the challenges, Atlas stressed that anonymity should be preferred by companies when they offer tools for Bitcoin.

„I think it’s important to put these privacy concerns on the to-do list of companies and remind them that it’s important and that they haven’t really taken care of it yet,“ he said.