The world of cryptocurrency is under suspicion from a number of regulatory bodies, in Florida and out, that feel that the unregulated system may be more of a problem if let to run without being checked. These sentiments run throughout the U.S. and received confirmation by a recent appointment from the Securities and Exchange Commission (SEC). One of the department’s main goals is finding various bodies in the digital world to find amicable ways to work within the stipulations of financial laws. Knowing this, the SEC appointed Valerie A. Szczepanik to a senior advisory role to oversee the digital securities regulatory body.
Following Szczepanik’s appointment, Jimmy Patronis, the state of Florida CFO, released plans to create a regulatory position for cryptocurrency in the state. Patronis ordered his office to create the position for the purpose of protecting investors in Forida against scams. Recent issues with initial coin offerings (ICOs) is leading to unsuspecting investors losing millions investing in scam coins. The ICOs work like IPOs, only that they are digital. The companies involved seek support by encouraging people to buy stakes in the coins to add value to them. A recent study by TokenData shows that 902 cryptocurrencies crashed in 2017 alone. This also includes users that lost their money trusting in ICOs.
Patronis, who also serves as the State Fire Marshal, states that people need protection from unscrupulous crypto users. These scammers are constantly looking for ways to make illegal maneuvers in the sector. He also says the state would take keen interest in any emerging digital platforms.
All Hands On Deck
The new position is going to work with the Office of Financial Regulation and the Office of Insurance Regulation. This partnership will create policy, document regulations and legislation, all while being overseen by the new head of the department. The departments will scrutinize emerging trends as well as educating the masses about the risks and benefits of working with digital currencies. The regulatory body will also serve as the link between the consumer and the trader providing the relevant information and checks for transactions. Florida is among the first states to raise their concerns and insist on a state-managed regulatory body.