Sunday, December 4, 2022
HomeNewsUS SEC And FINRA Issue Statement On Crypto Custody Issues

US SEC And FINRA Issue Statement On Crypto Custody Issues

As per the joint statement, the organizations haven’t yet to discover a set of circumstances where the crypto custodian could comply with the SEC’s Customer Protection Rule. Described as follows:

As per the report, a crypto custody service may not be able to sufficiently demonstrate its control over the assets it purports to hold. For instance, the SEC and FINRA asserted that simply holding a private key is not sufficient to demonstrate ownership of crypto.

The report also glosses over the issues for registering noncustodial services in the likes of over-the-counter (OTC) platforms and broker-dealer transactions. Bookkeeping policies and liquidation via the Securities Investor Protection Act were part of other areas of compliance concerns. 

Read more:Singapore’s Inland Revenue Authority Publishes New draft On GST For Crypto


Most Popular