The world-famous news agency Reyters made a report that the SEC has launched an investigation into crypto money hiding. The report stated that registered financial advisors are being investigated whether they comply with regulatory rules regarding the custody of their clients’ crypto and digital assets.
It started with the FTX bankruptcy
In the news, which stated that the SEC has been in talks with consultants on this issue in the last few months, it was written that the official investigation came after the FTX bankruptcy. As is known, financial advisors often use 3rd party platforms to store their clients’ digital assets.
While it was stated that SEC officials wanted to know according to which criteria investment advisors made their choices in custody, an SEC official reached by Reuters said that he did not want to comment on the subject.
According to the relevant law in the USA, investment advisors cannot store client funds on platforms that do not comply with certain requirements. The storage platform must be a “qualified” institution. However, the SEC does not grant any license to obtain “qualified” institution status.
