FINRA Wants Member Firms To Report Crypto Activities

News | July 11, 2018 By:

The Financial Industry Regulatory Authority (FINRA), an independent regulatory body for securities firms operating in the US, is encouraging member firms to notify the authority if they engage in any cryptocurrency activity.

In a regulatory notice, FINRA said the requested information will supplement its efforts to “ascertain the extent of FINRA member involvement related to digital assets.”

“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 notice said.

Until July 31, 2019, FINRA encourages member firms to keep their “Regulatory Coordinator” updated in the event they decided to engage in crypto activities, such as mining, acceptance of cryptocurrency from customers and custody of cryptocurrency.

“If a firm recently has provided notice to its Regulatory Coordinator in response to a direct request, has provided this information by way of the 2018 Risk Control Assessment (RCA) Survey, or has submitted a continuing membership application (CMA) regarding its involvement in activities related to digital assets, FINRA does not request additional notification pursuant to this notice unless a change has occurred,” the notice said.

Authorized by the US Congress in 2007, FINRA is a private corporation that acts as a self-regulatory organization (SRO). It is the successor to the National Association of Securities Dealers, Inc. (NASD) and the member regulation, enforcement and arbitration operations of the New York Stock Exchange. In 2017, it had 630,132 registered representatives processing 36 billion ‘market events’ every day, according to its website.