Australia’s Regulator Stops Holon from Offering 3 Crypto-Related Funds

Amid a series of mixed up, the Australia’s market regulator, Australian Securities and Investment Commission (ASIC) has ordered Holon investment fund to stop offering three cryptocurrency-related funds due to gross non-compliant as per report. 

The regulatory agency specifically cited non-compliant target market determinations (TMDs) as the major reason why it halts Holon from providing such service to retail investors.

According to Invest Smart release, a “target market” is a document that contains the major dos and don’ts such as who a product is appropriate for, objectives, missions, needs, among others.

The interim order now hinders the investment firm from offering investment options in Bitcoin, Ethereum, and FileCoin.

Meanwhile, ASIC further explained that any funds not suited to the wide target market will be considered or classified as TMDs. This includes an investment platform with medium, high or very high risk and return, which the investment service falls into. 

While the agency affirmed that cryptocurrency could expose investors to high risk and huge negative returns, it maintains that the public disclosure by Holon is different. 

ASIC said that Holon’s product disclosure statements (PDS) provided that investors could experience total loss of value, which is unusual in the crypto space.

The interim order imposed by ASIC is said to last for 21 days except there is a review leading to the revocation of the order. 

ASIC has not expressly provided details on what Holon investment fund is expected to adjust, but the regulator maintains that Holon should look into concerns and take urgent action towards ensuring compliance. 

Australia Closely Monitors Digital Assets

Prior to now, the Australian government has expressed keen interest in closely monitoring and regulating digital assets in order to protect investors.

The government of Australia has particularly maintained that all crypto assets are subject to appropriate regulations with a view to addressing the concerns of its residents. 

Recall that an Australian parliamentary committee on cryptocurrencies setup in 2021 reported their findings, emphasizing that one of the biggest problems was that national and international regulators do not have unanimous standpoints.