SEC Includes “Digital Assets” in its 2020 Examination Priorities: It’s been over 10 years for the existence of cryptocurrency and regulators from around the world are still discovering the best possible means to regulate it.
However, the most recent report published by the Securities and Exchange Commission (SEC), detailing the priorities for 2020 includes ‘their decision regarding digital assets’.
This report was detailed by ‘the US SEC’s Office of Compliance Inspections and Examinations (OCIE)’ which specifically mentioned;
“The digital assets market has grown rapidly and presents various risks, including for retail investors who may not adequately understand the differences between these assets and more traditional products,”
The agency will continue to research several aspects surrounding cryptocurrency such as the risks involved in it for retail investors and what makes digital assets differ from the traditional ones. The report further reads that;
“Due to these risks, OCIE will continue to identify and examine SEC-registered market participants engaged in this space. Examinations will assess the following: (1) investment suitability, (2) portfolio management and trading practices, (3) safety of client funds and assets, (4) pricing and valuation, (5) effectiveness of compliance programs and controls, and (6) supervision of employee outside business activities,”.
This isn’t the first time though, in the year 2018 as well, SEC reportedly included cryptocurrency as to how market players assure its assets the safety of their funds and whether or not they are educating customers about the risk associated with their digital asset-related products.
More so, OCIE went on to assure that they will oversee transfer agents which will certainly act as intermediaries in securities transactions or entities that are ‘developing blockchain technology’ or offering services to digital asset issuers. Interestingly, the document also highlights that they would supervise the staff, funds and outside business activities of crypto exchange.
You can read more about OCIE report here – https://www.sec.gov/about/offices/ocie/national-examination-program-priorities-2020.pdf
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