One of the investigations priorities of SEC for 2023 will be emerging technologies and crypto assets. In order to satisfy the needs of compliance, marketing, and client account servicing, the SEC will undertake inspections of broker-dealers and registered investment advisers (RIAs) that use cutting-edge financial technology or innovative business models, including technical and online solutions
Kraken has been charged by the Securities and Exchange Commission (SEC) for failing to register crypto asset staking-as-a-service program. Under this programme, investors transfer crypto assets to Kraken for staking in exchange for the company promising annual investment returns of up to 21%.
The crypto asset staking-as-a-service programme was being offered by Payward Ventures, Inc. and Payward Trading Ltd., since 2019. Both the firms are commonly known as Kraken.
SEC Chairman Gary Gensler has highlighted that bitcoin intermediaries must provide the necessary information and security precautions required by securities laws.
Chairman also stated that staking-as-a-service providers must register and offer complete transparency that is honest and fair as well as investor protection.
For settling the SEC charges, Kraken will pay $30 Million.
The Securities and Exchange Commission’s (SEC) Division of Examinations has unveiled its investor protection goals for 2023.
One of the investigations priorities of SEC for 2023 will be emerging technologies and crypto-assets. In order to satisfy the needs of compliance, marketing, and client account servicing, the SEC will undertake inspections of broker-dealers and registered investment advisers (RIAs) that use cutting-edge financial technology or innovative business models, including technical and online solutions.
The focus of the examinations of registrants will be on the offer, sale, recommendation of, or advice regarding trading in cryptocurrency or assets related to it, as well as whether the firm adhered to and met their respective standards of care when making recommendations, referring clients, or giving investment advice.
Additionally, whether the company regularly evaluated, updated, and improved its compliance, transparency, and risk management policies would be a key factor.
Director of Examinations Richard R. Best emphasised that the division’s goals will take into account the securities market’s changing environment and related hazards.
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