ParagonCoin deregistered by SEC due to non-compliance and violation of securities law

03/10/2023 08:24 • NFT Newsflash • 135 views

On March 10, it was reported that ParagonCoin, a crypto startup supported by American rapper Jayceon Terrell Taylor (the stage name is The Game), was deregistered by the United States Securities and Exchange Commission (SEC) because it failed to submit periodic reports and violated the securities law.

The encryption company ParagonCoin supported by the American rapper The Game was deregistered by the SEC

Analysis based on this information:

The announcement made on March 10 of the deregistration of ParagonCoin by the United States Securities and Exchange Commission (SEC) is a critical indicator of the increased scrutiny being given to cryptocurrency startups operating in the United States. ParagonCoin was a crypto startup established with the intent of revolutionizing the cannabis industry using cryptocurrency. The company became publicly identified due to its strong backing by popular rapper, Jayceon Terrell Taylor, known by his stage name The Game. However, ParagonCoin was unable to meet up with SEC requirements regarding periodic reporting as it pertains to securities laws.

The SEC is the regulatory body responsible for enforcing federal securities laws and for protecting investors. One of the ways it does this is by requiring companies to regularly file certain reports when creating securities, especially when conducting initial coin offerings or ICOs. These reports typically include an overview of the company and its status, as well as financial reports to give investors a clearer understanding of the company’s operations.

The fact that ParagonCoin has been deregistered means that the SEC has found it to be non-compliant with regulations and that it has violated securities laws. This move by the SEC has been seen as further proof of the agency’s willingness to use its powers to enforce adherence to the laws, especially by companies that are issuing crypto tokens or coins. The company’s failure to file periodic reports, which the SEC considers crucial to building investor confidence, may have led to suspicions regarding the company’s transparency and prudent business practices.

Overall, the SEC’s action against ParagonCoin indicates that regulatory agencies are concerned about the increasing number of cryptocurrency companies sprouting up and not doing the proper due diligence to ensure that they are compliant. This sends a strong message that regardless of who supports them, these startups need to be accountable for their operations and follow the laws on the books.

In conclusion, this action by the SEC is important for the cryptocurrency industry as it highlights the current regulatory landscape governing it in the United States. It also underscores the need for crypto startups to understand and comply with all applicable laws and regulations, particularly with regards to securities laws.

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