Time To Develop And Enhance Your Compliance Practices?
4 Mar 2021 — To investment advisers, broker dealers, national securities exchanges, transfer agents and other securities industry participants, if you are engaging in digital asset securities-related activities, it is time to develop and enhance your compliance practices for the U.S. Securities and Exchange Commission Division’s future examinations.
According to the risk alert under Custody, the examination will look at compliance with the custody rule of all digital assets for:
- any unauthorised transactions,
- controls around safekeeping of digital assets
- business continuity plan addressing key personnel access to private keys
- evaluation of harm due to loss of private keys
- software reliability for access to digital asset networks
- arrangements for storage of digital assets on trading platform accounts and with third party custodians
- security procedures for wallets
While the examination only applies to the US entities, this serves as a good reference especially for countries that are regulating digital assets.
Although the review will apply regardless of how digital assets are stored, by selecting and retaining a regulated independent custodian such as Propine would definitely provide you with a worry-free experience as the activities will be in compliance with regulations.