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

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.

Interpretation of this information:

The US Securities and Exchange Commission (SEC) has recently deregistered ParagonCoin, a cryptocurrency startup that was supported by rapper The Game, due to its failure to submit periodic reports and for violating securities law. The move signifies the SEC’s efforts in regulating the highly volatile and booming cryptocurrency industry.

The SEC has been quite active in regulating cryptocurrencies since last year, as they are seen as securities that are required to register with the commission to ensure compliance with securities law. However, many startups in the crypto industry have failed to comprehend this requirement, leading to the SEC stepping up its enforcement measures.

ParagonCoin was launched in 2017 with the aim of creating a blockchain-based platform for the marijuana industry. It has raised around $12 million during its initial coin offering (ICO) and has listed its tokens on multiple exchanges. However, the company has not been able to maintain compliance with the SEC’s regulations as they failed to submit periodic reports after the ICO, which is critical to disclosing financial information, developments, and management changes.

The SEC’s enforcement action should serve as a warning to other crypto startups that they need to comply with securities law or face similar consequences. The move would not only benefit investors but also bring legitimacy to the entire industry. The SEC’s increased scrutiny of crypto startups helps to weed out fraudulent projects and scams that have plagued the industry thus far.

In conclusion, the SEC’s action against ParagonCoin underlines the need for crypto companies to comply with securities law to foster a healthy and reliable crypto industry. The SEC’s efforts to regulate cryptocurrencies have long-term implications and would ensure the growth and sustainability of the industry. Compliance with securities law should be made a priority for all startups entering the crypto space to prevent fraudulent activities.