If they operate in regulated markets, then the regulations thereof determine their legality.
A ponzi scheme in itself isnt illegal (which is why there are so many crypto ponzi schemes) - it is when it is considered securities fraud that it becomes illegal.
The thought is that by regulating cryptocurrencies (i.e. treating it as a similar asset class as stocks, commodities, etc), such "investments" would be subject to the same rules - whether it has any real inherent value or not is irrelevant.
Serious question: Do you think no people have been harmed by crypto? My guess is by the end, 10s of thousands of people will have been seriously financially harmed.
DANK_YACHT|3 years ago
supermatt|3 years ago
A ponzi scheme in itself isnt illegal (which is why there are so many crypto ponzi schemes) - it is when it is considered securities fraud that it becomes illegal.
The thought is that by regulating cryptocurrencies (i.e. treating it as a similar asset class as stocks, commodities, etc), such "investments" would be subject to the same rules - whether it has any real inherent value or not is irrelevant.
snarf21|3 years ago