The U.S. Securities and Exchange Commission (SEC) has required U.S. companies to publicly disclose ownership of digital assets, as well as to report doing business with any crypto-currency firms.
The SEC does have the right to such requirements, since the regulator’s function is to oversee the disclosure of information by public American companies. Representatives of the regulator said that this requirement is due to “recent bankruptcies and financial difficulties among participants in the crypto-assets market.”
“When complying with disclosure obligations, companies must take into account the need to account for and work with cryptocurrencies, including business connections, risk factors and analytics,” the new SEC guidance says.
As such, companies should disclose direct and indirect ties to firms that have filed for bankruptcy or are experiencing mass withdrawals of crypto assets, or to firms holding clients’ crypto assets. In addition, companies must describe how the bankruptcy has affected their business and what steps have been taken to protect users’ crypto assets.
Earlier it was reported that the American regulator is going to develop a regulatory framework for regulating the cryptocurrency industry by 2023.
Source: Bits
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