FINRA Asks Companies To Disclose All Crypto-Related Information
The Financial Industry Regulatory Authority (FINRA, the U.S. financial overseeing agency, published a notice which asks companies to report all of the crypto-related activities that companies make.
According to “Notice 19–24”, which was published on 18th July 2019, all FINRA-registered companies should also register their digital asset activities — buying, selling, or holding crypto resources, and all derivatives based on cryptos.
FINRA`s notice is continuation of their plan for putting digital assets into regulation. The first steps were made in 2018, with the introduction of Regulatory Notice 18–20. In Notice 18–20 FINRA states that the digital asset market has grown significantly and has captured the interest of both institutional and retail investors. In the 18–20 Notice, the deadline for sending FINRA all crypto-related activities by FINRA-registered companies was July 31st, 2019, but with the new Notice 19–24 the time frame increased by a whole year.
The Notice also suggests companies to create a management board for the provision of services related to digital currencies or a company’s involvement into ICOs. Holding, accepting cryptos as a payment method, or even mining should be reported to the FINRA.
The Notice comes after a series of regulatory improvements based on Facebook’s plan of issuing a stablecoin — project Libra. The main concerns about Facebook’s cryptocurrency launch are about privacy and data leaks.
Information about digital asset activity can be provided in written form, including email communication.