The SEC will focus on cryptocurrencies and ICO fraud

nBankruptcy Commentary: The SEC’s financial inspection agency recently released its top priorities for its 2018 work, emphasizing that it will focus its efforts on addressing the risks of the ICO and the cryptocurrency market. OCIE will monitor the cryptocurrency market to review potential risks in related products and services, hoping to fully protect the interests of retail investors and ensure the normal operation of the entire market.n
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SEC2018 year projects deal withn
The SEC’s Compliance Inspectorate and Review Office (OCIE) announced its 2018 review focus on Wednesday. This year, the agency will pay special attention to matters relating to key market infrastructures, retail investor responsibility, cryptocurrencies, ICO and secondary market transactions this year. Investigators will continue to monitor the growth of cryptocurrencies and ICOs and “review registrants involved in their issuance and sale to ensure that investors are fully informed of the risks associated with these investments.”n
SEC chairman Jay Clayton commented:n
n”I really appreciate the efforts of OCIE who maximize the effectiveness of their resources and are keenly focused on asset verification, market infrastructure and accountability to retail investors.”n
nPete Driscoll, OCIE director, added:n
n”As the market continues to evolve and the products and services available to investors are gradually adapted to the environment, OCIE remains committed to a risk-based review program that prioritizes the interests of retail investors and examines the securities firms that pose a risk to investors As well as the normal operation of our capital markets. “n
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Protect retail investorsn
The regulator explained in the planning document:n
n”Cryptocurrencies and the ICO market are growing rapidly, posing some risks to retail investors. As these products and markets grow, the number of brokers and investment advisors involved in this space is also on the rise, and we will continue to monitor these Product sales, if these products are securities, we will check their regulatory compliance. “n
nIn addition, the agency will look to “whether professional financers maintain their proper controls and protections to protect the assets from theft or misuse; whether professional financiers disclose to investors the risks associated with these investments, Including investment loss risk, liquidity risk, price volatility and potential fraud. “n

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