Three Australian crypto funds arrested as regulator cites non-compliance
Three funds tracking Bitcoin, Ethereum and FileCoin received interim stop orders from Australia's market regulator in due to "non-compliant" target market determinations.
New
Australia's top financial markets regulator has issued interim stop orders on three cryptocurrency-related funds intended to be offered to retail investors, due to non-compliant Target Market Determinations (TMDs).< /p>
In a press release dated October 17 local time, the Australian Securities and Investments Commission (ASIC) said it had placed provisional stop orders on three of Australian asset manager Holon's crypto funds - which separately aim to invest in Bitcoin (BTC), Ethereum (ETH) and FileCoin (FIL).
A target market determination is a document that outlines who a product is appropriate for, based on likely needs, goals, and financial circumstances, as well as how the product may be distributed, according to Invest Smart.
In a statement to Cointelegraph, an ASIC spokesperson said the TMDs were "too wide [...] given the volatility and speculative nature of the crypto markets ".
They added that the regulator was concerned that Holon "did not properly consider the characteristics and risks of the funds in determining their target markets".
In its statement, ASIC said it considered the funds unsuitable for the broad target market defined in TMDs, including those with a "medium, high or very low risk and reward profile". high," those who intend...
Three funds tracking Bitcoin, Ethereum and FileCoin received interim stop orders from Australia's market regulator in due to "non-compliant" target market determinations.
New
Australia's top financial markets regulator has issued interim stop orders on three cryptocurrency-related funds intended to be offered to retail investors, due to non-compliant Target Market Determinations (TMDs).< /p>
In a press release dated October 17 local time, the Australian Securities and Investments Commission (ASIC) said it had placed provisional stop orders on three of Australian asset manager Holon's crypto funds - which separately aim to invest in Bitcoin (BTC), Ethereum (ETH) and FileCoin (FIL).
A target market determination is a document that outlines who a product is appropriate for, based on likely needs, goals, and financial circumstances, as well as how the product may be distributed, according to Invest Smart.
In a statement to Cointelegraph, an ASIC spokesperson said the TMDs were "too wide [...] given the volatility and speculative nature of the crypto markets ".
They added that the regulator was concerned that Holon "did not properly consider the characteristics and risks of the funds in determining their target markets".
In its statement, ASIC said it considered the funds unsuitable for the broad target market defined in TMDs, including those with a "medium, high or very low risk and reward profile". high," those who intend...
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