Speak To A Live Person: 888.302.4594 Request A Demo

Emergency Cease and Desist for Crypto-Promoter

Sunday, January 7, 2018

Cryptocurrency has been dominating the headlines. It seems like it is impossible to visit a financial website without encountering articles on cryptocurrencies such as Bitcoin, Litecoin, Ethereum, the list goes on. So much so that it has left advisors and their clients looking for ways to “get in on action”. It has also left Government’s and SRO’s wondering how they can regulate the marketplace and help protect those participating in it.

Recently the Texas State Securities Board issued an emergency cease and desist for BitConnect. The Securities Commissioner found that the BitConnect investments are securities, but were not registered as required by the Texas Securities Act and State Securities Board Rules and Regulations. In addition, the company is not registered to sell securities in Texas. Texas becomes the first state to issue an administrative order on cryptocurrency investments.

The world of cryptocurrency is still in its infancy. Investing in cryptocurrencies carries significant risk because of regulatory and legal actions, competition from other cryptocurrencies, cybercrime and the extreme volatility in the price of many cryptocurrencies. The cease and desist is a stark reminder to conduct thorough due diligence before considering any type of crypto exchange, digital wallet, cryptocurrency or any other tool synonymous with the world of cryptocurrency.

About Red Oak Compliance Solutions

Red Oak Compliance Solutions is the global advertising review software of choice in the financial services industry. It is a comprehensive suite of SEC 17A-4 compliant features that are 100% books and records compliant and provides clients with 35% faster approvals and 70% fewer touches or better. We also offer Smart Review(SM), which solves for the storage and maintenance of disclosures, helping firms reduce risk, decrease review times, and increase the speed of distribution of marketing materials. Smart Registration(SM) automates the licensing and registration management process to help reduce regulatory risk and time spent on manual processes. Overall, Red Oak allows firms to minimize risk, reduce costs, and increase compliance review process effectiveness and efficiencies.