CFTC to begin bounty program for those who report pump-and-dump schemes, Australia to revise its regulations of cryptocurrencies, top 5 cryptocurrency price changes, and more!
CTFC To Begin Bounty Program for Whistleblowers of Pump-and-Dump Schemes
The U.S. Commodity Futures Trading Commission (CFTC) has created a bounty program meant to encourage whistleblowers to expose pump-and-dump schemes in the cryptocurrency industry. According to The Merkle, whistleblowers who submit “original information that leads to a successful enforcement action that leads to monetary sanctions of $1 million or more” may be given a monetary award from the CFTC.
Australia To Update Cryptocurrency and ICO Regulatory Framework
According to The Merkle, the Australian Securities and Investments Commission (ASIC) will update their guidelines to more effectively address today’s cryptocurrency industry. John Price, a commissioner of the ASIC, cautioned potential ICOs that they will not be able to avoid government regulation. However, he also expressed the ASIC’s commitment to enable innovation in fintech without sacrificing consumer protections.
Seeking Alpha Reveals More Details Behind SEC Accusation Against Longfin
The SEC accused an ICO called Longfin of running an illegal cryptocurrency stock exchange. Seeking Alpha has provided more details about the potentially unlawful actions of Longfin. Specifically, Longfin is accused of abusing the Regulation A+ exemption, which allows “smaller companies to raise up to USD 50 million without having to incur many of the costs and burdens associated with a traditional Wall Street IPO.” The SEC alleges that three Longfin executives illegally sold large blocks of their restricted Longfin shares while the stock price was highly elevated.