This is the second time US regulators have banned the initial offering of tokens from BitConnect. On January 9, it was reported that the North Carolina Department of Security had imposed a temporary ban on BitConnect, arguing that the company did not have permission to trade securities in the state.
“The temporary ban on trading activities is based on the fact that BitConnect was not registered as a securities dealer in North Carolina and yet offered investors an investment, calling it the “BitConnect Lending Program.”
“The audit also found that BitConnect was offering these investments in North Carolina without maintaining any official records,” the Security Division said in a statement.
BitConnect is ordered by authorities to take thirty days to retaliate or the temporary ban will become permanent.
Like their counterparts in North Carolina, the Texas Securities Exchange Board temporarily banned transactions in cryptocurrencies, claiming that they are “risky investments.”
According to https://www.coindesk.com
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