The Australian Securities and Investments Commission (ASIC) has issued a suspension order on three crypto funds belonging to Sydney-based Holon Investments Australia Limited.

according to a Press release shared by the regulator on Monday, Holon’s three crypto funds include those pegged to Bitcoin (BTC), Ethereal (ETH) and Filecoin (FIL) respectively.

According to the regulator, the reason for the suspension of the offer of these crypto funds is that the company did not comply with the determinations of the non-compliant target market. ASIC fears that Holon is offering the product to retail investors whose investment goals and capabilities may not necessarily fit the risks associated with the three products.

The regulator reiterated that the embargo is temporary and will remain so for the next 21 days. The selection of Bitcoin, Ethereum and Filing is essentially based on their extreme volatility and, in a subtle way, their popularity with retail investors.

“The interim orders prevent Holon from issuing interest, providing a product disclosure statement, or providing general advice to retail clients recommending investments in the Funds. The order is valid for 21 days unless revoked sooner,” the announcement reads, adding that “ASIC issued the interim orders to protect retail investors from potentially investing in funds that may not be suitable for their objectives, situation or financial needs”.

The regulator noted that Holon Investments has the right to comply with its requirements to offer the products, otherwise it will place a final order suspending the products.

The Australian ecosystem is one that is very vibrant, however, with a large number of fraudulent practices hitting users in the country, regulators are very cautious in their attempts to protect the average consumer. Regulators in other major economies such as the United States and the United Kingdom share the same sentiment.

Altogether, this protection offer explains why many nations remain relatively slow with regulation adoption compared to major crypto hubs like the United Arab Emirates and Singapore.

Image Source: Shutterstock