NASAA Releases Its 2018 Annual Report, Over 130 Cryptocurrency ICO Scams Put Under Investigation


The leading securities regulator in North America, NASAA, released their annual enforcement report on Sept 10 placing special emphasis on cryptocurrency regulation across the region. The regulator is responsible for over $1 billion USD in money relief from state enforcement actions in 2018. The regulation commission collected $490 million USD in fines of perpetrators and $558 million USD in restitution to investors during its cause of operation last year.

The 14-page document further confirms the election of a new president to head the North America Securities Administrators Association (NASAA).

NASAA Investigating Over 130 Cryptocurrency Companies

In August BEG reported the increased scrutiny by NASAA on the cryptocurrency industry as 130 new cases were brought to book by the company in the first eight months of 2019. Operation Cryptosweep is taking full effect as the regulator aims to go against illegal ICOs and crypto firms in North America.

With the number of scams and illegal activities reported increasing by the year in the crypto industry, the NASAA commission has pledged to root out any illegal business operation or crypto functioning/offering licensed securities. The number of unregistered individuals in the securities markets almost doubled from 2015 – 335 to 700 cases in a span of less than three years. While the crypto field continues to produce bad actors even in its early adoption stages, the regulator is expecting an increase in the number of unregistered actors.

The report states,

“Given the ongoing state enforcement efforts against fraudulent activity involving cryptocurrencies, it would not be surprising to see a sustained high level of investigations and actions against unregistered individuals and firms in the coming years.”

The rapid growth of ICO processes and other crypto investment vehicles in late 2017 led to many crypto companies raising capital as a scam, misusing investors’ funds, or even failing completely.

NASAA Elects New President

New Jersey Securities Bureau Chief Christopher W. Gerold is the new president of the NASAA regulatory commission becoming the 102nd president. He will serve a one-year term at the helm – promising a closer look at the U.S market, which has seen tremendous growth in the number of unregistered investor advice firms. He said,

“Within the licensed securities industry, NASAA’s U.S. members reported a five-year high in the proportion of enforcement actions involving investment adviser investment adviser firms.”

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