[Continued from What is an Initial Coin Offering (ICO)? – Part I]
Online Platforms that Facilitate Trading in ICO Tokens are Not Registered Exchanges
There are no ICO platforms currently registered as exchanges. Further, the SEC has stated that it neither regulates these platforms as exchanges nor reviews the digital assets that may be listed or traded on these platforms. Many fraudulent platforms refer to themselves as exchanges to provide a sense of legitimacy and make investors assume they are regulated entities or meet the regulatory requirements and standards of a national securities exchange.