ASIC Temporarily Pulls the Plug on Three Funds Managed by Holon

The Australian Securities and Investment Commission (ASIC) in a release on Monday said it had placed a stop order on three cryptocurrency funds due to non-compliance with the target markets determination. This order will stop Holon Investments Australia Limited (Holon) from giving these funds to retail investors. 

The order made by ASIC is aimed at protecting retail investors from investing in funds that may not be appropriate for their financial needs or wants.

Meanwhile, the order is valid for just 21 days, although there is a tendency that it could be revoked earlier. These funds are dubbed Holon Bitcoin Fund, Holon Ethereum Fund, and Holon Filecoin Fund and together are referred to as “the Funds”.

The regulator alleges that the asset manager has not appropriately considered the features and risks of the funds while determining their markets. Therefore it declares that the funds do not suit the target market defined in Holon’s Target Market Determination (TMD). TMD is a document that describes the intended customers an investment product is designed for.

According to the press release, if Holon takes no steps to address the regulators’ concerns, a final stop order will be placed on the funds. The regulator may also consider additional regulatory actions regarding Holon and the funds.

Australia’s Crypto Industry

Meanwhile, while acknowledging that emerging technologies and products affect the nation’s financial ecosystem, ASIC shared its plans to protect investors earlier in August. The regulator launched a four-year plan that focuses on protecting investors from the harms posed by crypto assets and also put in place an efficient regulatory framework.

It is also keen on reducing the risk of harm caused by poorly designed products, via its design and distribution obligations (DDO). This is in line with the newly elected government’s plan to further regulate the crypto industry via a token mapping operation at the end of the year.

Also, the Reserve Bank of Australia (RBA) has launched a one-year research program into the potential economic benefits of a Central Bank Digital Currency (CBDC) as the nation works towards the development of its digital currency.