Interim Stop Placed on Holon Funds by Aussie Regulator

• Sidney-based crypto funds, Holon Investments is suspended due to non-compliant target market determinations (TMDs).
• The suspension applies to Holons Bitcoin, Ethereum, and Filecoin funds.

The Australian Securities and Investments Commission (ASIC) has suspended Sydney-based crypto-asset manager Holon Investments Australia Limited (Holon) from promoting or distributing three of its crypto funds to individual investors.

The suspension applies to Holons Bitcoin, Ethereum, and Filecoin funds, which are managed by the Crypto exchange Gemini. The suspension was imposed on October 17, 2022, and will remain in place for 21 days.

ASIC said that it was concerned that Holon had not appropriately considered the features and risks of the funds in determining their target markets. The regulator believes that Holon’s crypto funds are not suited to the wide target market defined in their TMDs, which includes investors ranging from potentially medium, high, or very high risk and return profile.

ASIC has requested Holon to take steps to ensure that its TMDs are compliant with the law. If Holon does not address ASIC’s concerns within a timely manner, a final stop order will be issued.

The suspension of Holon’s crypto funds is a significant development in the Australian crypto space. It is the first time that ASIC has taken such action against a crypto asset manager. The suspension is likely to have a chilling effect on the marketing and distribution of crypto funds in Australia.

It is important to note that the suspension does not affect the underlying assets of the Holon crypto funds. Investors who have already invested in these funds will not be affected by the suspension. However, they will not be able to buy or sell shares in the funds until the suspension is lifted.

ASIC’s action against Holon is a reminder of the risks associated with investing in crypto assets. Crypto assets are a highly volatile asset class, and investors should only invest what they can afford to lose. Investors should also do their own research before investing in any crypto asset.