Bitcoin/Cryptocurrency

The U.S. Securities Exchange Commission (SEC) continues its scrutiny on cryptocurrencies. In its January 7 announcement, SEC’s Office of Enforcement Inspections and Examinations (OCIE) added fintech, including digital assets, to its annual priority list in the coming fiscal year. In line with this, the division will continue to prioritize the analysis of certain activities and products which are believed to pose risks to investors as well as the reputation of the U.S. capital markets. Examinations of these focus areas are designed to support the SEC's mission to protect investors, promote capital formation, and keep markets fair and effective.

The rising popularity of cryptocurrency constantly brings profound transformations in payment transactions. Every day, more and more businesses turn to cryptocurrency because of its decentralized structure, efficient transaction flow, and low operation cost. However, as new regulatory frameworks arise, companies relying on cryptocurrency become prone to government crackdowns and are exposed to legal and financial hurdles.

Cryptocurrency is currently gaining popularity around the world as it builds better investment opportunities for several business sectors including the financial and banking industry. However, along with its soaring prominence, issues such as insolvency, crypto-backed finance, valuation claim risks, and digital asset restructuring challenges also emerge.