SEC Reminds That Cryptocurrency Doesn’t Get A Free Pass From Security Laws

Cryptocurrency ReviewIf you’ve been paying attention lately, you’ll notice that Cryptocurrency has been getting a lot of hype.

Because it’s new, it’s getting a lot of buzz and if you’re in an online business, I am sure someone will push it on you at some point.

It’s especially popular on social media at the moment.

I do want to let you know that I am NOT affiliated with Cryptocurrency as a member or distributor.

My goal is to gather all the facts in one place for you so you can do your research – and it’s all here in my Cryptocurrency Review.
Is Cryptocurrency a legit business, or is it a complete scam?

Will I be able to build a business with it?

I tell you all about it in my Review of Cryptocurrency.

Read below to find out more.

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What Is Cryptocurrency?

If there’s one trend that was seen more than anything else in the MLM space throughout 2017, it has to be that of pump and dump cryptocurrency schemes.

There were a handful of ones here and there trying to get in on the crypto market while still offering a legit business opportunity, but these were few and far between compared to those trying to solicit hard-earned cash from people in illegal manners.

The niche of cryptocurrency in the MLM space has been growing since as far back as 2014, but we really started to see a rise in MLM cryptocurrency setups throughout 2015 and 2016.

As for 2017, it was the biggest year of these opportunities ever.

Bitcoin took off like crazy this year, and as such, plenty of people did what they could to try and cash in on this hype.

Again, it’s possible for an MLM opportunity to use cryptocurrency in some form while still offering a legitimate and legal business opportunity. However, in order for this to happen, security offerings need to be clearly defined and be approved by government firms in countries where they are offered.

For MLM underbelly schemes that use crypto as a way to get people to invest into nothing, this isn’t the case.

As we get ready to leave 2017 and go into the new year, the SEC’s Chairman, Jay Clayton, has issued a statement titled “Statement on Cryptocurrencies and Initial Coin Offerings.”

In part of this statement, Clayton says that “market participants should treat payments and other transactions made in cryptocurrency as if cash were being handed from one party to the other.”

This is something that I try to reiterate when conducting MLM cryptocurrency reviews, and it’s something that everyone should always be keeping in the back of their mind in order to stay safe in the MLM space these days.

Cryptocurrency Scam

As the statement goes on, Clayton says “We are hearing the familiar refrain, ‘this time is different.’”

Clayton follows this up with:

“Investors should understand that to date no initial coin offerings have been registered with the SEC.

There is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation.

If you choose to invest in these products, please ask questions and demand clear answers.”

This might sound like basic knowledge, but it’s something that the majority of MLM crypto opportunities don’t bother with.

Any time an ROI is being offered, you should be able to see exactly how this is funded with proof to back up any claims that are being made. Any crypto-based MLM opportunity is more than willing to tout how large of an ROI you can earn, but when it comes to how they can actually afford this, that’s usually a different story.

Furthermore, this point is only reinforced when there’s a chance your invested funds are being sent overseas without you knowing about it. On this matter, Clayton says:

“Please also recognize that these markets span national borders and that significant trading may occur on systems and platforms outside the United States.

Your invested funds may quickly travel overseas without your knowledge.

As a result, risks can be amplified, including the risk that market regulators, such as the SEC, may not be able to effectively pursue bad actors or recover funds.”

Seeing an MLM opportunity that’s promoting an ICO can sound awfully exciting these days, and while we aren’t trying to urge you to not invest into legitimate opportunities, there are a few questions you can ask yourself before handing your money down to know whether or not you’re getting involved with the right crowd.

Some questions include:

  • Who exactly am I contracting with?
  • Who is issuing and sponsoring the product, what are their backgrounds, and have they provided a full and complete description of the product?
  • Have they been paid to promote the product?
  • Where is the enterprise located?

These questions can go on and on, but you get the basic idea. Know who’s involved with the company, understand what the product is, and try to make sense of what exactly is being offered with the compensation plan.

Rounding out his statement, Clayton concludes with:

“Any such activity that involves an offering of securities must be accompanied by the important disclosures, processes and other investor protections that our securities laws require.

A change in the structure of a securities offering does not change the fundamental point that when a security is being offered, our securities laws must be followed.”

I don’t suspect that cryptocurrency MLM schemes will die out completely in 2018, but I really am hoping that the SEC follows through with this stance and does what it can to limit the active number of them as much as possible.

 

Any Truth To The Cryptocurrency Rumours?

Any time a new business opportunity launches, you will always hear rumours about them being scams – so is Cryptocurrency a scam?

From reading above, you might already be thinking Cryptocurrency is a scam.

So, is it?

Is there a Cryptocurrency scam, or is it legit?

To be honest, Cryptocurrency isn’t a complete scam.

However, there are some red flags to be worried about, which I discuss in the conclusion.

See my tips below for helping to make money.

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And Now, My Cryptocurrency Conclusion

 

I hope you have gained value from my Cryptocurrency Review.

I have put all the details you need to know here, because all other reviews of Cryptocurrency have been fairly limited with details.

If you do decide to proceed with Cryptocurrency or any business, you’ll find my free training helpful – I will show you how to make money online.

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