US Securities and Exchange Commission Starts Review of Cryptocurrency Hedge Funds
Securities Commission and exchanges USA (SEC) began reviewing the practices followed by hedge funds investing in cryptocurrencies and ICO. About this writes Bloomberg with citing 3 sources familiar with the situation. Since such funds manage funds of third-party investors, SEC wants to make sure they meet the required requirements.
As part of the investigation, the SEC sent inquiries to such funds, asking them to explain how they are evaluate digital investments, and provide information on Tom, what are they doing for prevent the risk of theft funds their investors. Some foundations lucky less – the SEC sent them subpoenas and informed them of its intention to conduct a detailed investigation into their activities, threatening punishment in case of violations.
According to information company Autonomous Research, works in the cryptocurrency field about 220 funds under management which is $ 3.5 billion. Many of them manage amounts up to $ 150 million, what frees their from the need to register with the SEC.
“SEC took very prudent position in respect of this space, ”says Peter Van Valkenberg, director of the Coin Center advocacy group. “I believe they are just trying to take control of the ecosystem as a whole.”.