Last updated on June 9th, 2019 at 08:01 pm
Securities and Exchange Commission (SEC) in the United States has disclosed that it will review its decision blocking nine bitcoin-based exchange-traded funds.
The regulatory body has been preventing bitcoin-related traded funds from coming to the market.
There were fears that bitcoin-based exchange traded funds could lead to fraudulent activities by operators.
On August 22, 2018, it was reported that bitcoin-related exchange applications were further rejected by SEC staff, signaling low trust of SEC in the veracity of such trade.
Bitcoin and other altcoins are prone to manipulations and fraud. Potential investors have lost billions of dollars since the surge in cryptocurrency began two years ago.
While people jumped on the band wagon while bitcoin was “hot” several billions of dollars were lost as it depreciated in value.
Bitcoin value isn’t reliable as it moves back and forth, while an investor could lose his entire savings within minutes if not traded with caution.
A communique on SEC website, said SEC’s four commissioners will review those decisions.
“SEC staff have delegated authority to make a decision on such applications, meaning the commissioners and the SEC chairman have the power to review the decision if they desire,” reuters said.
It would be recalled that the commissioners previously voted 3-1 to reject another bitcoin ETF application.
But Republican commissioner Hester Peirce said such rejection negates innovative idea in the digital world and trading.
At the time of compiling this report (15:48, August 24), bitcoin was trading at $6,548.91 on coinmarketcap.com
Virtual currency is the most easiest means of moving money money around the world, making it an open means of perpetrating high level of fraud and corruption, SEC decision is further hinged on this.