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
