The regulator wants ads to spell out the risks involved in crypto investments.
The Securities and Exchange Commission (SEC) is preparing to require cryptocurrency exchange operators to disclose the risks involved in their trade, the regulator said on Thursday.
The SEC said the goal is for the rules to come into effect by mid-year, with the new rules requiring crypto exchange operators to specify the text in ads: “Cryptocurrencies are high risk. You may lose the entire investment amount.”
In a statement, the regulator said: “Digital asset traders are also required to acknowledge such risks before using the service and trading to ensure that traders are…
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