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- Australian regulators hold three crypto funds linked to Holon.
- The company did not assess the risks associated with the funds.
- Crypto market has not witnessed any sign of recovery in recent times.
Portfolio Damaging Crypto Funds
Since the dawn of Bitcoin, international regulators are constantly pinching the crypto sector to shed control over them. Majorly due to the fact that they are highly volatile and can prove to be a hazardous element in any investor’s portfolio. The Securities and Exchange Commission remains one of the biggest entities to implement the regulatory framework over the market. Recently, an Australian financial watchdog put a halt on three crypto funds associated with Holon.
The authorities served a stop order to the funds tracing Bitcoin, Ethereum and Filecoin. According to the Australian Securities and Investment Commission (ASIC), Holon Investment Limited cannot offer the three funds to retail investors. The regulators think that the funds are not designed to deliver value to an investor portfolio as it does not comply with target market determination (TDM).
ASIC thinks that Holon did not assess the potential risk associated with the assets. This includes investors with medium, high or very high risk or return, are using the funds as satellite and standalone components in the portfolios. The company focuses on reducing investor’s losses as much as possible and these funds were a part of their operations. It seems like they have to leave them behind from here.
The decentralized nature of crypto assets is a major problem for the regulators globally. They are always going after them in order to reduce the risks associated with the financial profiles of the people. Recently, the EU reached an agreement concerning the Markets in Crypto Assets (MiCA) proposal. The European Union wants to reduce false practices like money laundering.
In another news, the Organization for Economic Co-operation and Development (OECD) submitted a “transparency initiative” to the G20. Many believe that this regulatory framework might not affect the United States. Previously the intergovernmental forum asked OECD to develop a method to automate crypto taxation.
With the activeness these authorities are trying to implement regulations on cryptocurrencies, it appears like they are not stopping anywhere. And why should they, after all they are the ones people chose to decide what is beneficial and what’s not. Crypto winter has added boost to their motive as the market downturn caused several investors to escape the sector.
SEC remains the biggest opposer to the cryptocurrencies, marking it with the title of Wild West. It’s like watching Al Pacino’s Lt. Vincent Hanna going after Robert De Niro’s Neil McCauley in Heat. The sector is already dying and there’s no significant sign of recovery since crypto winter’s arrival.
Bitcoin was trading at 19,325 USD at the time of writing, while Ethereum was changing hands at 1,315 USD.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
