US clamps down on ICOs

Deals under scrutiny: A bitcoin (virtual currency) paper wallet with QR codes and a coin are seen in an illustration picture shot. The SEC says companies issuing ICOs must register the deals with the government unless they have a valid excuse. — Reuters

LOS ANGELES: US regulators said they have jurisdiction over one of the hottest new areas of finance: initial coin offerings (ICOs) of digital currencies.

Companies that raise money through the sale of digital assets must adhere to federal securities laws, the Securities and Exchange Commission (SEC) said Tuesday. Issuers must register the deals with the government unless they have a valid excuse, as should exchanges that offer trading of cryptocurrencies like bitcoin and ether, the regulator said.