The U.S. financial industry’s self-regulatory body, FINRA, has requested information about the existing or planned cryptocurrency activities of its associates in a bid for more investor protection, a published notice revealed on Friday. Although not obligatory, the appeal includes a wide range of cryptocurrency investments that are subject to the body’s interest, including assets that are deemed as securities and non-securities as well.
“The market for digital assets, such as cryptocurrencies and other virtual coins and tokens, has grown significantly and has increasingly been of interest to retail investors. At the same time, investor protection concerns exist, including incidences of fraud and other securities law violations involving digital assets and the platforms on which they trade,” FINRA said.
FINRA wants to be informed about various crypto activities: mining of digital coins, participation in cryptocurrency trading, interests in Initial Coin Offerings (ICOs) and pre-ICO token sales as well as the acceptance of digital coins from customers. The self-regulatory body aims at crypto management and the advisory business of its clients like clearance facilitation.
The growing cryptocurrency exchange market is also part of FINRA’s focus as the body encourages its members to share information about the establishment of exchanges, providing custody settlement, and similar arrangement activities.
The virtual asset notice has a one-year period as FINRA encourages its members to inform their Regulatory Coordinator for any new crypto activity till July 31, 2019.
“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 FINRA explained in a statement.
The Financial Industry Regulatory Authority or FINRA is the US broker-dealers self-regulatory body established in 2017. It has supervisory powers for and can impose sanctions on its members if they do not follow FINRA internal rules.
This article appeared first on Cryptovest
