The Financial Industry Regulatory Authority (FINRA) has highlighted a new commitment by dedicating an entire chapter on crypto assets in their 2024 Annual Regulatory Oversight Report.
Its decision is also indicative of the fact that SFA has been paying more attention to this fast-growing crypto industry and risks it poses for investors.
For the first time, FINRA’s report lays out important aspects for member firms involved in crypto-related activities.
This encompasses the determination of whether crypto assets are security protections, solid cybersecurity and anti-money laundering systems, as well as clear and compliant retail communications.
The report also notes that FINRA is worried about non-compliance in crypto-related advertising, this rate being much higher as compared to other products. This implies that there is a need for increased vigilance and more stringent compliance to rules in this field of concern.
The recent actions taken by SEC to bring more supervision over the crypto industry also align with this, as FINRA has considerably stepped up its concentration on it.
This trend may persist, and this may result into tighter legislations or enforcement actions in the near future.
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