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The US Securities and Exchange Commission (SEC) Compliance Review Department (OCIE) has listed cryptocurrencies in its 2020 oversight priority list.
A new paper released by OCIE emphasizes that the emerging digital asset market may pose a risk to retail investors who do not always understand the difference between such assets and traditional commodities and securities.
For the first time, OCIE drew attention to cryptocurrencies in 2018. Then, in the corresponding document, officials noted the need for checks of cryptocurrency companies. In 2019, the regulator has more clearly expressed the priority of cryptocurrency supervision. In 2020, OCIE reiterated the 2019 goals by adding a clause stating that it is necessary to monitor employee activity even after hours.
Recall that yesterday a court in the Southern District of New York rejected the SEC's petition for information on banking operations and the use of funds raised by the TON project in the framework of the ICO.
A new paper released by OCIE emphasizes that the emerging digital asset market may pose a risk to retail investors who do not always understand the difference between such assets and traditional commodities and securities.
Quote:
“In connection with these risks, OCIE will continue to identify and verify market participants registered in the SEC and working in this field. The checks will be as follows: investment suitability, portfolio management methods and trading strategies, security of client funds and assets, pricing, effectiveness of programs and means of monitoring compliance with regulatory requirements, supervision of employees outside the company, ”the document says.
“In connection with these risks, OCIE will continue to identify and verify market participants registered in the SEC and working in this field. The checks will be as follows: investment suitability, portfolio management methods and trading strategies, security of client funds and assets, pricing, effectiveness of programs and means of monitoring compliance with regulatory requirements, supervision of employees outside the company, ”the document says.
For the first time, OCIE drew attention to cryptocurrencies in 2018. Then, in the corresponding document, officials noted the need for checks of cryptocurrency companies. In 2019, the regulator has more clearly expressed the priority of cryptocurrency supervision. In 2020, OCIE reiterated the 2019 goals by adding a clause stating that it is necessary to monitor employee activity even after hours.
Recall that yesterday a court in the Southern District of New York rejected the SEC's petition for information on banking operations and the use of funds raised by the TON project in the framework of the ICO.