Earlier this year, the North American Securities Administrators Association (NASAA) debuted a joint task force comprised of state and provincial securities regulators, with the purpose of cracking down on fraudulent and unregistered initial coin offerings and cryptocurrency projects. The effort has been called the “largest coordinated series of enforcement actions” by regulators in the United States and Canada.

The North American regulatory organization has provided an update on the operation originally launched in May. The NASAA has revealed that 46 separate “enforcement actions” have been taken “involving ICOs or cryptocurrency-related investment products.”

NASAA President Joseph P. Borg said that the regulatory entity is “committing significant regulatory resources” to protect investors from “financial harm.” He continued:

“While not every ICO or cryptocurrency-related investment is a fraud, it is important for individuals and firms selling these products to be mindful that they are not doing so in a vacuum; state and provincial laws or regulations may apply, especially securities laws. Sponsors of these products should seek the advice of knowledgeable legal counsel to ensure they do not run afoul of the law. Furthermore, a strong culture of compliance should be in place before, not after, these products are marketed to investors.”

Borg suggested investors do their homework before taking risks, and urged sponsors of ICOs and crypto investment products to “seek the advice of knowledgeable legal counsel to ensure they do not run afoul of the law. Furthermore, a strong culture of compliance should be in place before, not after, these products are marketed to investors.”

Securities regulators across the globe need to provide additional clarity into what constitutes a cryptocurrency project as a security, rather than leaving investors guessing. Only recently, did the United States Securities and Exchange Commission go on record stating that Ethereum wasn’t deemed a security. Prior to this, the SEC had only deemed Bitcoin to not be a security according to US securities law.

SEC commissioner Jay Clayton applauded the NASAA in a public statement, for their efforts around Operation Cryptosweep.