US Regulators Ask Securities Firms to Share Digital Asset Information
FINRA, while not a government project, is the organization in charge of investor protection within the United States. The company monitors the crypto-industry, overseeing its brokerages and dealers and ensuring the safe and protected operational environment.
Recently, FINRA has reached out to brokerage and securities sellers, asking them to hand in cryptocurrency-related activity reports. A new regulation was announced earlier stating that any securities business involved in sales must register accordingly with the SEC and be certifiably licensed by FINRA to continue operating.
FINRA also said that it was overlooking the crypto market, keeping an eye on any direct developments to determine the FINRA involvement within the crypto-sphere. The regulator stated through its issuing that any company or individual, whether currently involved or looking to join the crypto-sphere and directly deal with cryptocurrencies must absolutely be reported and registered.
Companies have also been urged to constantly update its regulators on any plans to oversee or conduct cryptocurrency transactions or otherwise, including future plans. FINRA CEO, Robert Cook, explained that several organizations and authorities were paying much closer attention to digital assets, referring to ICOs and cryptocurrencies.
The CEO adds that FINRA will have a focus on regulation policies and how involved registered figures like companies and individuals are affecting the current ICO and cryptocurrency transactions. Should the assets consist of any securities through trade or sale, the firm will conduct reviews to ensure full compliance with regulations set by FINRA.
FINRA also warned investors and businesses against fraudulent advertising by companies promising large profit and gains through cryptocurrency transactions without being able to provide the required information and evident proof of authenticity, also referred to as a “pump and dump” scheme. As of now, FINRA has almost 700K registered members.