SEC Lists Cryptocurrency as Top Examination Priority For 2019
By Luke Flowers – Cryptocurrency Broker
The US Securities and Exchange Commission (SEC) will be examining cryptocurrencies as a priority for 2019 as reported by CNN. SEC’s Office of Compliance Inspections and Examinations (OCIE) have said it will be looked at with a focus of protecting retail investors in the promising asset class. The activities of crypto trading, buying and selling Bitcoin and the management of digital assets will be examined.
In areas where digital assets will be classified as a security, SEC’s compliance department want to be able to ensure they achieve regulatory compliance with buying and selling crypto and how they are managed. For the future, market participants in the crypto space can expect a great level of inspection from the OCIE.
The OCIE are moving forward with identifying market participants roles enabling buying and selling crypto, to manage the products and assess the degree of their action. Companies that are already participating in the digital asset area will be examined by the OCIE with a focus on the portfolio management of trading, safety of the customer funds and assets, pricing of portfolios as well as compliance and internal controls. These areas have been selected based on policy and risk assessment relating to various industry issues.
The SEC’s actions have impacted negatively on digital assets and critics have argued the harsh restrictions on ICOs was damaging to its innovation. SEC has rejected some Bitcoin exchange traded fund applications in 2018 and this was a surprise as the chair, Jay Clayton, was appointed in role with the expectation that he would support the sector.
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