US : TECH STARTUPS TOKEN

US regulator settles with tech startups over token sale violations.

The US Securities Exchange Commission settled charges on Friday with two technology companies for improperly offering digital tokens, mandating that they register their offerings as securities and reimburse investors.

The action marked the first time the regulator has imposed penalties against tech startups that skirt its registration rules when making ''initial coin offerings.''

It also underscores a ramping up of the SEC's oversight of the cryptocurrency's space as it looks to protect investors from potential scammers.

The SEC had warned in March that it would hold most token offerings to the same standards as  securities offerings, and impose fines on bad actors that violated securities laws.

After raising a combined $27 million from investors, CarrierEQ Inc [AirFox] and Paragon Coin Inc agreed to pay investors back, and each will pay $250,000 in fines as part of the settlement, the regulator said in a statement.

''AirFox expects to continue growing its blockchain platform within a regulatory framework,'' the company said in a statement.

The companies didn't admit or deny the SECs charges, but both agreed to file periodic reports for at least 12 months.[Agencies]