US Sees Nationwide Crackdown on Crypto by SEC

0
23

The US Securities and Exchange Commission (SEC) has reportedly launched a nationwide crackdown on what it deems to be pontential misconduct involving cryptocurrencies.

According to three undisclosed sources who spoke with Politico, the SEC’s Office of Compliance Inspections and Examinations has been asking professional investment advisors, who manages more than USD 100 million, for information about initial coin offerings (ICOs) and cryptocurrencies.

According to Politico, the so-called investment advisors include large institutional investors like private equity funds and hedge funds that are operating in the cryptocurrency space.

One issue the SEC is reportedly looking into is that of custody for cryptocurrency investors. In the world of traditional finance, third party custody solutions are normally mandatory to use for professional money managers. However, the lack of such solutions in the cryptocurrency space means many firms have come up with their own solutions, thus operating in a legal grey area.

Another problem is that the lack of regulatory clarity means professional money managers to a large extent don’t know how they should report their crypto activities to the SEC in order to stay compliant. However, according to Gail Bernstein, general counsel at the Investment Adviser Association, the best thing they can do is just to think of crypto investments as any other investment “through the lens of their fiduciary duty and compliance programs.” He told Politico, that “typically, after a sweep of this type, the SEC staff will publish its findings and observations, and that can provide very helpful guidance for advisers as they consider their compliance obligations.”

In other words, investment advisors dealing with crypto investments for clients better hope the SEC will choose someone else to set an example for the rest of the industry to learn from.

Last year, SEC Chairman Jay Clayton said that the agency will “police this area [cryptocurrencies] vigorously and recommend enforcement actions against those that conduct initial coin offerings in violation of the federal securities laws.”

Previous articleStorm is Coming: “EOS is Not a Blockchain”
Next article10 Steps to Create a Facebook Page that Gets “Likes”
Nana Kwame Boadu (AMABE) - (b1989) A professional Human Resources Personnel by training and consultant by passion,Nana Kwame Boadu prefers to be referred to as "Millionaires Consultant" to entrepreneurs and Start Ups. Nana Kwame Boadu founded SamBoad Ventures in 2014 and later founded SamBoad Micro-Credit Services in 2018. SamBoad is a financial aid and business agency services provider with subsidiaries providing Loans, Dhl(Courier Services), Mobile Money Services, Consultation & Investment management and advisory services. Beyond the provision of basic financial aid and business agency intermediation services SamBoad has partnerships with banks, real estate firms, travel consultation firms and agents that actively invests in and promotes the development of small and medium size entreprises of African origin including start-ups. SamBoad Ventures - a flagship subsidiary of SamBoad, has been the leading provider of retail agency services to the informal sector of Ghana since 2014. SamBoad Micro-Credit Services is also another initiative of Nana Kwame Boadu. Established on the principles of helping start ups ,unbanked and upcoming entrepreneurs to provide financial aid to them, eradicating poverty and help promote and provide employment. As Lead marketer at Freights Masters shipping agency, he worked there for a year bringing in businesses for exports and clearing of goods.He then went ahead to serve the Nation for a year at Drivers and Vehicle Licensing Authority(DVLA) at koforidua.After he had an opportunity to work with BEIGE as a relationship officer – a Ghanaian based Financial Institution; he had responsibility for providing investment advisory, deposit mobilization, Loan advisory ,capacity building and Customer Service for One and a half years.He then moved to Dalex Finance as a loan officer and Sales and Marketing Representative,still building his Company SAMBOAD. An award winning Blogger/Consultant and Motivational Speaker highly regarded as one of Ghana’s emerging Start Up business leaders, Digital Marketer,Prolific Speakers and Entrepreneur and New Business Developer, Nana Kwame Boadu has demonstrated throughout his career, profound intellectual capacity in matters relating to entrepreneurship, start up and New Business Development as well as continuous leadership in business excellence.In 2015 he was recognized twice as a top distributor(Ghana) of Alliance in Motion Global(Alpha Alliance) and 2016 and 2017 he was recognized at his Branch as agorohene at the Adenta Branch of BEIGE. Nana Kwame Boadu was recognized by president of Full Gospel BusinessMen Fellowship International as promising youth personality for Entrepreneurship and Motivational Speaking. In 2017 he was again recognized as Promising Blogger in an Indian Daily Mill Magazine the 6th most influential Digital Marketer person in Indian(Facebook & Instagram). Nana Kwame Boadu’s ambition is to continue pursuing entrepreneurial aspirations as a means of influencing and inspiring a new breed of leaders from Africa and help build start ups to create employment through micro-loans, Summit ,Consulting and Digital Marketing. He is a Member of ABE, UK

Leave a Reply

Leave a Reply

  Subscribe  
Notify of