RE: Texas state securities serves Bitconnect an emergency cease & desist order

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Texas state securities serves Bitconnect an emergency cease & desist order

in bitconnect •  7 years ago 

A Ponzi scheme indeed. I passed the CPA exam and know that if you are to crowd fund something or offer securities as an investment then you are bound to the rules of the SEC and local securities laws.

Cryptocurrency is not regulated by governments yet. But government regulation is on the horizon given the currencies' popularity and appeal as an investment. In the mean time the cryptocurrency is considered a currency like the U.S. dollar or Euro where there is self-regulation.

I believe that this could be the beginning of the government's interest in determining whether or not there should be a regulatory body, like the SEC, that oversees the cryptocurrency. This case and future cases will be interesting to watch since there could be landmark legislation.

Either way, I find it appalling that someone would "hard sell" cryptocurrency to the public especially in Texas. Cryptocurrency should be an investment that does not require a store shop with a "snake oil salesman." What in the hell are these people at Bitconnect doing? They are making cryptocurrency look bad.

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I don't know if we're all reading the same cease and desist letter, but that letter doesn't name a single person within Bitconnect. It's just a blatant attempt to throw some FUD around at a very popular lending platform. The letter essentially goes on to explain what Bitconnect already tells you in their fine print. If there is so much concern over the possibility of a scam being put over on the investing public, then USI shouldn't have even received a letter. USI has the strongest SEC compliance going so far as to register their overarching company and incorporating many regulatory measures such as anti-money laundering measures like strict ID verification that are usually left to higher end crypto exchange platforms. Yet, USI was the first to be thrown into the mud. So if anything can be said about Texas' sudden interest in lending platforms, it's that they are wanting to sling FUD on the many lucrative opportunities amid the crypto landscape. It wouldn't surprise me to see cloud mining being thrown under the bus next.

Each person makes their own choices. It's not for the government to cast shade on what those choices are especially when it comes to finding our individual paths to financial freedom. To each their own.

Ponzi scheme? Absolutely no doubt about it!

I dont think that is a Ponzi scheme. Minexcoin work in the same way with minexbank and the payment is in MNX, from their reserve, to keep the coin stability.

  ·  7 years ago (edited)

@johnkumar - who cares if ur a cpa. cpas are a dime a dozen nowadays and it doesn't mean jack when it comes to cryptocurrencies. stick to your government fiat where you can play with funny numbers and the gov can continue to use our social security funds like personal bank accounts, and then they have the galls to tell us it's going bankrupt! Now the gov wants to prevent people from protrecting their wealth from their irresponsible policies! NO enough is enough!