The Securities and Exchange Commission (SEC) has warned companies that invest in digital assets and cryptocurrencies to have a risk management system in place to mitigate the impact of market volatility.
The SEC has issued circular letters to listed companies that invest in or use cryptocurrencies or digital assets, urging them to implement risk management systems to minimize the risk and impact of volatility in the cryptocurrency market. The companies are warned to make careful decisions to ensure that their digital investments do not jeopardize their financial positions or operating results, as these investments are vulnerable to cybercrime.
The SEC advised businesses to also set up a system to ensure the existence and proper use of digital assets, as well as that their business operations are in accordance with the regulations and measures. The regulating body will also request that the companies’ audit committees inspect and comment on the efficiency of their internal control systems for digital asset governance.
The SEC warning comes in the wake of the cryptocurrency market’s continued volatility, with its market value dropping by roughly 70% in seven months. As of 1 PM on Thursday, Bitcoin, the largest cryptocurrency by market cap, was traded at 22,011.01 dollars, down 68.1 percent in seven months from its peak price in November 2021. Ethereum, the second-largest coin by market cap, was trading at 1,187.61 dollars, down 75.4 percent in seven months.
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Reporter : Krajangwit Johjit
Rewriter : Thammarat Thadaphrom
National News Bureau : http://thainews.prd.go.th