FINRA Wants Firms to Report All Crypto-Related Activities
- A massive bipartisan move against crypto is going on in the US.
US broker-dealer watchdog Financial Industry Regulatory Authority (FINRA) issued a notice asking the companies to disclose all their activities related to digital assets.
The July 18 notice detailed that FINRA-registered firms should disclose crypto-related activities like “purchase, sales, or executions transactions” in digital assets, investment in crypto-focused pooled funds, or even derivatives tied to crypto.
Also, the regulator wants the companies to report on the creation of management or provision of advisory services for pooled funds related to digital currencies or in the case of their participation in initial coin offerings (ICOs) or secondary market trading.
Even if a registered company is engaged in the custody of digital assets, Crypto Mining Crypto Mining Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Read this Term, or accepting Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term from customers, the regulators want to know.
“As securities regulators continue to provide guidance to members regarding the unique regulatory challenges presented by digital assets — e.g., Joint Statement on Broker-Dealer Custody of Digital Asset Securities — FINRA believes it is important to keep the lines of communication with members open on this important topic. As a result, FINRA is issuing this Notice to encourage each firm to continue to keep FINRA up to date on the firm’s new and planned activities relating to digital assets not previously disclosed,” the notice stated.
A tough time for crypto?
FINRA’s notice comes at a time of regulatory tension around the world amid Facebook’s announcement of introducing its digital currency. The social media company’s head of crypto was recently grilled consecutively by committees from the US Senate and House about privacy and data-related concerns with its upcoming crypto.
“Until July 31, 2020, FINRA encourages firms to promptly notify their Regulatory Coordinator in writing (including email) of these activities. If a firm already has submitted a continuing membership application (CMA) regarding its involvement in activities related to digital assets, or has otherwise provided this information to FINRA, additional notice is not requested unless a change has occurred,” the regulator stated.
US broker-dealer watchdog Financial Industry Regulatory Authority (FINRA) issued a notice asking the companies to disclose all their activities related to digital assets.
The July 18 notice detailed that FINRA-registered firms should disclose crypto-related activities like “purchase, sales, or executions transactions” in digital assets, investment in crypto-focused pooled funds, or even derivatives tied to crypto.
Also, the regulator wants the companies to report on the creation of management or provision of advisory services for pooled funds related to digital currencies or in the case of their participation in initial coin offerings (ICOs) or secondary market trading.
Even if a registered company is engaged in the custody of digital assets, Crypto Mining Crypto Mining Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Read this Term, or accepting Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term from customers, the regulators want to know.
“As securities regulators continue to provide guidance to members regarding the unique regulatory challenges presented by digital assets — e.g., Joint Statement on Broker-Dealer Custody of Digital Asset Securities — FINRA believes it is important to keep the lines of communication with members open on this important topic. As a result, FINRA is issuing this Notice to encourage each firm to continue to keep FINRA up to date on the firm’s new and planned activities relating to digital assets not previously disclosed,” the notice stated.
A tough time for crypto?
FINRA’s notice comes at a time of regulatory tension around the world amid Facebook’s announcement of introducing its digital currency. The social media company’s head of crypto was recently grilled consecutively by committees from the US Senate and House about privacy and data-related concerns with its upcoming crypto.
“Until July 31, 2020, FINRA encourages firms to promptly notify their Regulatory Coordinator in writing (including email) of these activities. If a firm already has submitted a continuing membership application (CMA) regarding its involvement in activities related to digital assets, or has otherwise provided this information to FINRA, additional notice is not requested unless a change has occurred,” the regulator stated.