U.S. SEC Is­sues Warn­ing On Cryp­tocur­rency Ex­changes

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The Se­cu­ri­ties Ex­change Com­mis­sion has is­sued a warn­ing against on­line trad­ing plat­forms for dig­i­tal as­sets (cryp­tocur­rency ex­changes) and says that "if a plat­form of­fers trad­ing of dig­i­tal as­sets that are se­cu­ri­ties and op­er­ates as an "ex­change," as de­fined by the fed­eral se­cu­ri­ties laws, then the plat­form must reg­is­ter with the SEC as a na­tional se­cu­ri­ties ex­change."

The SEC had pre­vi­ously is­sued a sim­i­lar warn­ing against so-called ICOS (ini­tial coin of­fer­ings).

The SEC is not yet ex­plic­itly defin­ing cryp­tocur­rency as a se­cu­rity and the Se­cu­ri­ties and Ex­change Act of 1934 that does de­fine a "se­cu­rity" did not an­tic­i­pate the fu­ture ex­is­tence of in­de­pen­dent dig­i­tal cur­rency.

The IRS is treat­ing cryptocurrencies not as cur­rency or money but as as­sets which can be taxed when sold for hard cur­rency.

So un­til new rules are passed, cryptocurrencies still re­side in a gray area and it may take a court rul­ing to more clearly de­fine the reg­u­la­tory na­ture of cryptocurrencies.

A wide range of cryptocurrencies are traded and ex­changed for hard cur­rency on hun­dreds of in­de­pen­dent, un­reg­u­lated ex­changes around the world. Some sites claim that there are hun­dreds of thou­sands of trades ev­ery day worth bil­lions of dol­lars.

Be­cause there is lit­tle or no reg­u­la­tion of cryptocurrencies or the ex­changes, fraud is all too com­mon and many of the ex­changes are in re­al­ity just crim­i­nal en­ter­prises.

Some of the ex­changes claim to have been the vic­tims of mas­sive thefts of dig­i­tal coins but the coin thefts were later re­vealed to ac­tu­ally be inside jobs.

One way to get rich quick these days is to setup a cryp­tocur­rency ex­change and start trad­ing dig­i­tal coins and then stage a hack and claim that coins were lost, then sell or ex­change the coins else­where.

Af­ter the SEC warn­ing was is­sued on March 7, the var­i­ous ex­changes posted sub­stan­tial drops in the value of most cryptocurrencies. The prob­lem is that the cryp­tocur­rency mar­ket is so fake and ma­nip­u­lated that many mar­ket move­ments are likely en­gi­neered.

While a large por­tion of the cryp­tocur­rency in­dus­try is fraud­u­lent, there are play­ers strug­gling for some sort of le­git­i­macy. But le­git­i­macy re­quires some sort of reg­u­la­tion and most cryptocurrencies were de­signed to be de­cen­tral­ized and un­reg­u­lated to meet the needs of cryp­toa­n­ar­chists and crim­i­nals. They were not de­signed for le­git­i­mate reg­u­lated com­merce with the nec­es­sary over­sight and checks and bal­ances.

The IDMC in­tends to of­fer a sound reg­u­la­tory frame­work for re­gional dig­i­tal cur­ren­cies so that they can be used for le­git­i­mate trade and not re­side pri­mar­ily in the chaos of in­vestor ex­changes.

out the year, since it no longer freezes solid in win­ter.

Green­house gas con­cen­tra­tions could rise higher than at any time in our planet's his­tory.

As green­house gas con­cen­tra­tions con­tinue to in­crease ever faster, temperatures will rise be­yond the range re­quired to sup­port most life, in­clud­ing our own.

This win­ter's Arc­tic heat wave clearly shows that we have been de­lud­ing our­selves. The pro­jec­tions of most cli­mate sci­en­tists are way, way off. Al­most none of them pre­dicted such rapid warm­ing.

As lead­ing cli­mate sci­en­tist James Hansen keeps try­ing to tell us, the UN'S In­ter­gov­ern­men­tal Panel on Cli­mate Change (IPCC) is a great fraud. It's cli­mate re­search as­sess­ments have de­lib­er­ately ex­cluded the Arc­tic and so of course failed to make ac­cu­rate pre­dic­tions or prompt mean­ing­ful ac­tion.

We are flat out of time.

The time to think that we can slow or stop run­away cli­mate change or that we will just need to adapt to temperatures only 2°C or 4°C warmer is long over. We are al­ready con­sis­tently see­ing temperatures across the planet that are more than 20°C above nor­mal, yet the au­thor­i­ties con­tinue to re­port the tired lie that the planet has only warmed by 1.5°C.

New Zealand re­cently re­ported that they have al­ready had the hottest sum­mer ever. Spring has ar­rived in many parts of the U.S. and Canada at least a full month early.

Now is the time to ur­gently de­velop the means for sur­vival on a planet that will soon no longer be able to sup­port life as we have known it.

We need to come to terms with the fact that no mat­ter how many solar pan­els and wind tur­bines we erect and how many dirty coal power plants we re­tire, it won't stop what is com­ing. It might slow it a bit, but not by much.

We are now at the point where the only thing that might stop the rapid heating of Earth and mass ex­tinc­tion of life is some sort of rad­i­cal geo-en­gi­neer­ing such as caus­ing the erup­tion of vol­ca­noes around the globe to cool the planet. But, any type of geo-en­gi­neer­ing is likely to have its own neg­a­tive con­se­quences and face strong pub­lic op­po­si­tion.

If our gov­ern­ments and aca­demic in­sti­tu­tions won't help save use per­haps we can do it on our own.

For­tu­nately, dig­i­tal cur­ren­cies of­fer us a life-line. Done right, in­de­pen­dent re­gional dig­i­tal cur­ren­cies as de­scribed in the above ar­ti­cle could pro­vide the fi­nan­cial re­sources needed to build par­tially un­der­ground car­bon-neg­a­tive cities, de­velop and de­ploy new tech­nol­ogy to re­move car­bon from the at­mos­phere and pre­serve select species.

In­stead of send­ing a hand­ful of peo­ple to at­tempt to live on an un­in­hab­it­able Mars, we could save our own planet, which was well-suited for life un­til we screwed it up.

We the peo­ple no longer have to be trapped in an un­sus­tain­able cul­ture. We can ac­cess the re­sources to cre­ate a new, bet­ter and sus­tain­able cul­ture.

But first there must be enough of us able to wake up, think for our­selves, see what is hap­pen­ing now and com­ing in the near fu­ture and then have the courage to do some­thing about it.

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