Two crypto companies will register the tokens as securities after ICOs following the requirements of the US Securities and Exchange Commission (SEC).
According to the news reports, SEC reported the following companies – CarrierEQ Inc. (Airfox) and Paragon Coin Inc, saying that they failed to submit the application for ICO as securities distribution. Moreover, they do not enjoy any exceptional rules.
The companies managed to get $15 and $12 million respectively from the token sales that were held last year.
With the regulator's order, the companies will have to pay $250,000 fine, register tokens and pay back money to investors. Moreover, they will have to submit business reports to the SEC on a regular basis.
It is worth mentioning that this is the first time when the regulator applies civil measures just for violation of ICO registration rules.
In addition, SEC official said that securities issuing via ICO campaign are subject to the current regulation and token must be registered as securities otherwise the corresponding measures will be applied.
"These cases tell those who are considering taking similar actions that we continue to be on the lookout for violations of the federal securities laws with respect to digital assets," SEC noted in the released document.