Regulator FINRA requests US Firms to report Cryptocurrency dealings


US self-regulatory body, the Financial Industry Regulatory Authority, has requested the US firms to report cryptocurrency dealings. The firms will need to do so until July 31, 2019.

10 July, AtoZ Markets Earlier last week, the financial markets regulator in the US, the Financial Industry Regulatory Authority (FINRA) has released a regulatory notice on its website. The regulator has requested all member firms to report their cryptocurrency dealings.

Regulator FINRA requests US Firms to report Cryptocurrency dealings

The FINRA notice states:

“FINRA is issuing this Notice to encourage each firm to promptly notify FINRA if it, or its associated persons or affiliates, currently engages, or intends to engage, in any activities related to digital assets, such as cryptocurrencies and other virtual coins and tokens.”

The self-regulatory body has also required to continue the updates on any new virtual currency dealings from firms until July 31, 2019. 

The notice comes as the most concrete action FINRA has takes so far in regards to the virtual currencies. You can find the official regulatory notice from the US watchdog here.

FINRA Urges to Avoid Cryptocurrency Scams

Earlier in December of 2017, FINRA has cautioned investors’ community about the possible stock scams that have the connection to cryptocurrencies. The regulatory body has released an Investor Alert, where it has encouraged investors to carry out comprehensive research prior to buying shares of any company offering cryptocurrency investment.

The officials have also told investors to exercise extreme caution when it comes to the unrealistic prediction of the returns. Investors also should watch out for unsubstantiated claims that are made via spam email, press releases, cold calls, or posted on social media. The regulator notes that these might be the signs of “pump and dump” scam.

The Investor Education Foundation with FINRA has carried out a survey of 2000 investors with non-retirement investment accounts. The survey has found out that individuals stocks are the most frequently held investment globally.

The officials highlighted that Blockchain, robo-advising, and cryptocurrency appear among the sectors to be wary of.

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