Securities and Exchange Commission says Cryptocurrency platform should be registered

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Bitcoin slumped back below $10,000 after the US Securities and Exchange Commission said that many online trading platforms for digital assets should register with the agency as exchanges. The largest cryptocurrency named Bitcoin has dropped as much as 13% to $9,416 after the SEC stated about cryptocurrency platform registration.

If a platform offers to trade of digital assets that are securities and operates as an exchange, as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or to be exempt from registration, the SEC said in the latest statement.

Some of the largest trading platforms are not registered as an exchange with SEC, Many platforms are referring to themselves as exchanges, which can give the wrong impression to investors that they are regulated or meet the regulatory standards of a national securities exchanges.

The SEC statement was issued by its trading and markets unit and its quality enforcement division, which investigates misconduct and fines to the firms which are not registered for violating securities rules. Exchanges which are registered have to follow proper rules and regulations that have been made for fair trading.

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