Beaxy Accused of Not Registering as Exchange, Broker and Clearing House: SEC Shuts Down Cryptocurrency Platform

03/29/2023 14:46 • AI & Tech Insights • 66 views

According to reports, the United States Securities and Exchange Commission has accused Beaxy, a cryptocurrency platform, and its executives of failing to register as exchanges, brokers, and clearing houses. The encryption platform Beaxy has officially been shut down. The SEC also accused founder Artak Hamazaspyan and his controlled company Beaxy Digital Ltd of raising $8 million in an unregistered Beaxy token issue.

US SEC Accuses Beaxy of Operating an Unregistered Cryptographic Trading Platform

Cryptocurrency markets may have taken investors on a wild ride over the past few years, but regulatory agencies have been keeping a close eye on developments in this space. The latest news comes in the form of the United States Securities and Exchange Commission (SEC) leveling allegations against Beaxy, a cryptocurrency platform.
According to reports, the SEC has accused Beaxy and its executives of failing to register as exchanges, brokers, and clearinghouses. The SEC has halted the workings of the Beaxy site, which can no longer be accessed by users. Furthermore, the regulatory watchdog has also accused founder Artak Hamazaspyan and his controlled company Beaxy Digital Ltd of unlawfully raising $8 million in an unregistered Beaxy token issue.

The Beaxy Controversy Explained

In the cryptocurrency world, platforms like Beaxy are utilized for trading digital currencies like Bitcoin and Ethereum. Many such platforms launch their own native tokens to facilitate transactions on their networks. However, as per SEC regulations, platforms that offer such tokens need to be registered as exchanges, brokers, or clearinghouses.
Beaxy, as per the SEC’s indictment, is found guilty of not registering as any of these. Moreover, the company is accused of misleading investors about its ability to prevent money laundering and not disclosing potential conflicts of interests in pursuing a listing on a major exchange. The SEC highlighted multiple examples of misrepresentations from Beaxy.

Consequences of the Allegations

The SEC’s actions have effectively shut down Beaxy, leaving users without access to their accounts on the platform. The SEC has demanded the return of all the funds that investors had invested in Beaxy’s native token, which the company has reportedly agreed to. Beaxy has also agreed to a penalty of $225,000.
The SEC’s indictment of Beaxy sheds light on its ongoing efforts to regulate cryptocurrency platforms that do not comply with its rules. Recently, the agency took down another platform called EtherDelta for failing to register itself as an exchange.

Conclusion

The SEC’s indictment against Beaxy highlights the need for regulatory clarity in cryptocurrency markets. While investors and traders may continue to engage with these platforms on a regular basis, it is essential that operators clearly follow established regulations so that investors’ assets are safeguarded.

FAQs

Q1. What is Beaxy?

Beaxy is a cryptocurrency platform for trading digital currencies like Bitcoin and Ethereum.

Q2. What is SEC?

The Securities and Exchange Commission (SEC) is a US regulatory agency responsible for enforcing federal securities laws and regulations.

Q3. Why did the SEC take action against Beaxy?

The SEC accused Beaxy and its executives of failing to register as exchanges, brokers, and clearinghouses, and unlawfully raising $8 million in an unregistered Beaxy token issue.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/ai/10892.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.