The Securities and Markets Commission (SEC) of the United States is preparing to supervise more than 100 risk investment funds that worked with cryptocurrencies. The source close to the Wall Street Journal said that this new operation is not part of the investigations already initiated by the agency against the companies linked to illegal Initial Offer of Currencies (ICO).
In this case, prosecutors will report on activities that violate the law, but in general, the initiative aims to define the regulatory framework for cryptocurrencies exchanges operators. The supervisory operation is expected to begin within the next two months.
SEC worries for the individual US-based cryptocurrencies investors
Besides, SEC says that they worry about the security of the platforms in question because they are constantly under attack by hackers who seek to steal the traders’ funds.
Thus, the SEC already has in its sight more than 100 private investment funds that have taken part in cryptocurrencies investments, although it also considers auditing the private investment firms that have in turn financed startups, or ICOs, of the cryptocurrencies ecosystem.
SEC is targeting about 84 investments fund who invested more than $2 billion
Wall Street Journal cites that according to Morgan Stanley, the inspected investments funds place investments of more than $2 billion in Bitcoin (BTC) and other cryptocurrencies during 2017, as well as, during that same period, more than 100 hedge funds related to cryptocurrencies were launched, out of which, 24 had a growth of 3000% in 2017, according to data firm HFR Inc.
Some of the most important hedge funds such as Fortress Investment Group and Horizon Kinetics LLC have already made significant investments in cryptocurrencies.
In recent days, the SEC issued a statement warning that all companies that manage cryptocurrencies exchange operations must be registered with the institution, in order to protect investors based in the United States. Now, SEC (Securities And Markets Commission) will investigate more than 100 investments funds linked to cryptocurrencies.