FINRA Encourages Members To Notify Of Crypto Mining & Digital Asset Related Activities
An important U.S. self-regulatory agency for broker dealers is requesting information to its member firms to submit details about their cryptocurrency activities. The information has been released in a regulatory notice issued on Friday in which the Financial Industry Regulatory Authority requests information about the firms’ involvement in the crypto market.
The main intention is to know if any member has been trading virtual currencies, accepting them from customers, managing a pooled crypto fund, or participating in a token sale, among other things.
At the same time, FINRA indicated that cryptocurrency mining and other blockchain aras are on the agency’s interests so as to monitor them.
The organization explained:
“Until July 31, 2019, each firm is encouraged to keep its Regulatory Coordinator updated if it, or its associated persons or affiliates, begins or intends to begin, engaging in a new type of activity relating to digital assets not previously disclosed.”
FINRA has been authorized by the U.S. Congress back in 2017 and it has been incorporated as a self-regulatory organization. Its main objective is to approve and supervise broker-dealers in the country.
The main intention is to see whether there are companies involved in fraudulent activities or violating securities laws in the country. The last year, FINRA issues a warning to retail investors about getting involved in the cryptocurrency market. In December 2017, cryptocurrencies reached new all time highs and since then the market is in a downtrend that does not seem to end.