Monitoring and examining the cryptocurrency marketplace will one of the tip priorities of the regulatory watchdog – the U.S. Securities and Exchange Commission (SEC) – in 2019. The SEC has recently published a report, called the Office of Compliance Inspections and Examinations (OCIE), for 2019.
The OCIE news mentions six “themes for OCIE’s 2019 Examination Priorities” that embody digital resources in the form of digital tokens, cryptocurrencies, and coins. Moreover, the OCIE will also guard crypto marketplace activities including the ‘offer and sale, trading, and government of digital assets’.
Besides monitoring the rising market, OCIE will also pull correspondence for existent confidence laws. Hence for any digital item personal as a security, the compliance wing will safeguard the coercion of correct regulatory measures. The OCIE report notes:
OCIE will take stairs to brand marketplace participants offering, selling, trading, and handling these products or deliberation or actively seeking to offer these products and then consider the border of their activities. For firms actively intent in the digital item market, OCIE will control examinations focused on, among other things, portfolio government of digital assets, trading, reserve of customer supports and assets, pricing of customer portfolios, compliance, and inner controls.
Major Purpose of Protecting Retail Investors
The news records that the simple idea of OCIE will be to strengthen the investors’ seductiveness in this nascent cryptocurrency market. Furthermore, OCIE will also illuminate investors per the risks of investing in crypto assets. The news records that the areas prioritized for hearing are comparison on policies, comment or risk, and several sector.
“Areas of concentration will include, among other things, either financial professionals say adequate controls and safeguards to strengthen these resources from burglary or misappropriation, and either financial professionals are providing investors with avowal about the risks compared with these investments, including the risk of investment losses, liquidity risks, cost volatility, and intensity fraud.”
Currently, there’s a flourishing view that SEC’s actions have a disastrous impact of the expansion of the crypto sector. The emanate of commendatory a Bitcoin ETF has been slow for long. In Nov 2018, the SEC authority expressed unwillingness approve Bitcoin ETF until the exchanges bring better notice tools.
Later, in Dec 2018, the authority also pronounced that ICOs are good fundraising schemes supposing “securities law is followed”.
“I trust that ICOs can be effective ways for entrepreneurs and others to lift capital. The novel technological inlet of an ICO does not change the elemental point that, when a confidence is being offered, our bonds laws contingency be followed,” he said.
Crypto investors have been heavily weighing on the attainment of Bitcoin ETF to move back the bullish movement in the crypto market. However, the SEC has always incited a cold shoulder to it. Last month, the SEC Commissioner pronounced that crypto investors shouldn’t keep many high hopes from the agency. The capitulation of Bitcoin ETF is a vicious emanate and it can take anywhere between a few days to many years.
Despite the long going matter, item government association and index account provider Bitwise has recently applied for Bitcoin ETF with the SEC. Bitwise says that it has deliberate all regulatory mandate before the latest application.