The U.S. Securities and Exchange Commission (SEC) is reportedly investigating one of the world’s biggest cryptocurrency exchanges, Coin.
The SEC’s Enforcement Division is looking into whether Coin violated securities laws when it launched its Initial Coin Offering (ICO). The SEC is reportedly focusing on whether the exchange sold unregistered securities, as well as whether it misled investors about the use of funds raised from the ICO.
The SEC investigation is part of a broader effort to clamp down on illegal activity in the cryptocurrency market. The agency has previously targeted other exchanges for similar violations, including Bitfinex and Tether.
Coin has yet to comment on the investigation, but the news has sent shockwaves through the cryptocurrency community. Many exchanges have already taken steps to ensure that they are compliant with securities laws, but the SEC’s investigation of Coin could have a chilling effect on the industry as a whole.
