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In the News: US Crackdowns on SPACs; Chinese Companies with Ties to the Military Targeted; and AML to Include Crypto
February 08, 2024 | BY
Brian Chan &Krista LeeThe U.S. released new regulations that will bring SPAC disclosure requirements more in line with traditional IPOs; First Chinese VC firm is included in U.S. Defense Department's military-related company list; and China is working on expanding its Anti-Money Laundering Law to cover virtual assets
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U.S. to Increase Disclosure Requirements on SPACs
On January 24, the U.S. Securities and Exchange Commission (SEC) adopted new rules to increase disclosure requirements and investor protections in initial public offerings (IPOs) through special purpose acquisition companies (SPACs) and in subsequent acquisitions between SPACs and target companies (de-SPAC transactions).
The SEC began scrutinizing SPACs after a surge in such deals in 2020 and 2021 sparked concerns that target company financial projections were frequently optimistic or misleading.