SEC proposed crypto exchanges to disclose more information about their clients

The new initiative will require companies to report “significant” cybersecurity incidents to the regulator

15.04.2022 - 13:15

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What’s new? The US Securities and Exchange Commission (SEC) has proposed cybersecurity risk management rules for corporations that imply greater transparency when disclosing customer information. According to the document, the new amendments will require companies to report “significant” cybersecurity incidents.

The SEC’s new rules

What else does the document say? The rules will target investment advisers, investment funds, and business development companies. The new amendments may lead to the disclosure of the crypto sphere’s clients. The SEC’s proposal says:

“We believe requiring advisers and funds to report the occurrence of significant cybersecurity incidents would bolster the efficiency and effectiveness of our efforts to protect investors, other market participants, and the financial markets in connection with cybersecurity incidents.”

What had happened before? The SEC called for the adoption of new rules for the operation in the crypto market. The regulator plans to strengthen oversight of cryptocurrency exchanges and issuers of stablecoins. The Commission also tightened reporting rules for crypto exchanges. The document instructs platforms to register the cryptocurrencies they hold for customers as assets and their obligations to customers as liabilities.

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