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Fintech

US cryptocurrency crackdown could boost capital raising in Europe

Fintech experts say SEC warnings on cryptocurrency fundraisings could see European activity grow in a 'textbook case of regulatory arbitrage'

US cryptocurrency crackdown could boost capital raising in Europe
Photo: iStockPhoto

European capital raisings in cryptocurrencies could surge after the US financial watchdog said it would crack down on the unregulated practice, dubbed by some as ‘the Wild West’.

The US Securities and Exchange Commission said in a report yesterday that ICOs — short for ‘initial coin offerings’ — are deemed securities unless they have a valid exemption and that they are “therefore subject to the federal securities laws”.

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