US clamps down on red-hot digital coin offerings

Los Angeles

REGULATORS in the US said they have jurisdiction over one of the hottest new areas of finance: initial coin offerings (ICOs) of digital currencies.

Companies that raise money through the sale of digital assets must adhere to federal securities laws, the Securities and Exchange Commission (SEC) said on Tuesday. Issuers must register the deals with the government unless they have a valid excuse, as should exchanges that offer trading of cryptocurrencies such as bitcoin and ether, the regulator said.