Former SEC employee urged to withdraw assets from crypto platforms
Date: 2023-06-12 Categories: IN WORLD
The expert reacted this way to the latest events in the industry - the prosecution of Binance and Coinbase by the department.
“I believe the SEC is excellent in its efforts to enforce laws related to digital assets. It doesn't matter what the "booze barkers" promise, it is an axiom that platforms carry high risks and are inherently insecure. […] Crypto exchanges are under siege by US regulators, and it has only just begun,” he stressed.
Stark explained that his position is based on [platform operators'] lack of registration with the SEC, indicating a lack of oversight.
“There are not gaps in customer protection, but an abyss,” said Reed Stark.
The specialist referred to the problems of crypto exchanges with record keeping, as well as their non-compliance with order flow requirements.
Reed Stark emphasized that there is no internal reason for companies to follow US laws that prohibit market manipulation, insider trading, trading against customers and other offenses.
According to the specialist, there are no requirements for cybersecurity or privacy protection, internal compliance obligations, provisions for handling customer complaints and no minimum financial standards for transactions.
