The SEC has revised regulations for ICO portals, reducing the investment knowledge test requirements and introducing mandatory biennial suitability assessments for digital token investors, set to take effect on November 16, 2025.
The Securities and Exchange Commission (SEC) has revised regulations for ICO portals to streamline communication and services for investors. These changes aim to reduce the burden on both service providers and investors concerning the investment knowledge test. However, ICO portals are now required to conduct a suitability assessment for digital token investments at least once every two years.
Previously, the SEC proposed amendments to regulations governing communication and service provisions by ICO portals, specifically regarding the knowledge test and suitability test for digital token investors. These proposed changes align with the standards applied to securities business operators and digital asset business operators. Following a public hearing on the principles and draft amendments, the majority of stakeholders expressed agreement with the proposed revisions.
The SEC has therefore issued notifications of
the aforementioned amendments with key points as follows:
1. Requiring investors who are not institutional
investors, ultra-high net worth investors, or high net worth investors with
legal entity status to complete a knowledge test before investing. Investors
who have already passed the knowledge test are exempt from retaking the test;
2. Requiring ICO portals to assess
investors’ suitability for digital token investment (suitability
test) before providing services to investors. The
suitability assessment information must be reviewed and updated at least once every
two years.
The notifications of the amendments* have been published
in the Government Gazette, taking effect from 16 November 2025.
Source : SEC amends knowledge and suitability test rules for digital token investors
