Last year, investors in Hong Kong fell for a similar scheme known as a"rug pull": non-fungible token projects vanished after heavy promotion.to shut down its offerings in the U.S. and proposed new rules to restrict how asset managers invest customer funds in cryptocurrencies. Similarly, the U.K. has strengthened its oversight by pledging to regulate a broad range of crypto asset activities.
Hong Kong has recently moved to restrict retail trades to only the safest coins. With the introduction of new regulations, local regulators are attempting to put up a mighty fortress to shield investors against the treacherous crypto seas that are apparently full of scam coins. Meanwhile, in other corners of the globe, countries like the United Arab Emirates and Japan are building the infrastructure necessary to construct a solid foundation of rules for the burgeoning crypto industry.
This is why the SEC wants to regulate crypto.