On February 7, 2018, the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (“OCIE“) announced its 2018 examination priorities, which include a focus on cryptocurrencies and initial coin offerings. OCIE will continue to monitor the sale of these products, and where the products are securities, examine for regulatory compliance. In addition, as the number of broker-dealers and investment advisers engaged in this space continues to grow, OCIE will be examining registrants involved in their offer and sale. Areas of focus will include, among other things, whether financial professionals maintain adequate controls and safeguards to protect these assets from theft or misappropriation, and whether financial professionals are providing investors with disclosure about the risks associated with these investments, including the risk of investment losses, liquidity risks, price volatility, and potential fraud.
For a full copy of the 2018 priorities, click here.
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