The Australian Securities and Investment Commission has placed a stop on three crypto funds owned by Holon Investments Australia Limited, based in Sydney.
According to a Press Release Monday’s regulator shared three Holon cryptocurrency funds, which include those tied to Bitcoin (BTC), Ethereum Filecoin (FIL), and Ethereum (ETH) respectively.
The regulator stated that the firm failed to meet non-compliant target markets determinations, which led to the suspension of the offering of these crypto funds. ASIC fears Holon might be offering the product for retail investors who may not have the right investment goals and abilities to take on the risks associated with these three products.
The regulator reiterated that the embargo will be temporary and remain so for the next 21-days. The selection of Filing, Ethereum, and Bitcoin is based on their extreme volatility, as well as their popularity with retail investors.
“The interim orders stop Holon from issuing interests in, giving a product disclosure statement for or providing general advice to retail clients recommending investments in the Funds. The order is valid for 21 days unless revoked earlier,” the announcement reads, adding that “ASIC made the interim orders to protect retail investors from potentially investing in funds that may not be suitable for their financial objectives, situation or needs.”
Holon Investments can meet its requirements to sell the products. If it does not, the regulator will place an order to stop the sale of the products.
Although the Australian ecosystem is quite vibrant, it is also home to a lot of diversity. fraudulent practices The country’s users are being affected, so regulators are careful to ensure that the average consumer is protected. Regulators in other major economies, such as the United States and Great Britain, share the same sentiment.
All in all, Protection Many countries are slow to embrace regulation in comparison with other major crypto hubs, such as Singapore and the UAE.