Company fined for offering unauthorized bitcoin operations
The Abra application was sanctioned with two fines of $ 150,000 each
The United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) announced on Monday the fines applied to the company Abra who offered unauthorized bitcoin trading.
The application aimed to acquire cryptocurrency derivatives, as indicated in a report issued by the SEC, as a subsidiary company in the Philippines identified as Plutus Technologies in which financial swaps operated. Transactions were based on traditional securities through the retail market, without registration and without execution on a registered national exchange.
According to the bulletin, “by using the application, individuals were able to enter into contracts that provide synthetic exposure to movements in share prices and Listed Investment Funds (ETFs) in the United States. This through blockchain-based financial transactions with Abra or with related company Plutus Technologies.”
In addition, the SEC also notes that Abra did not justify the participation of eligible investors and not retailers. Regarding this point, Marco Santori, from the legal department of the Kraken exchange house, indicated in his Twitter account that Abra only allowed operations of a certain group of operators “that is, wealthy people with companies.”
For his part, CFTC regulatory section director James McDonald insisted that eliminating “misconduct is essential to promote the responsible development of these innovative financial products.”
K.Villarroel
Source: criptonoticias
