In 2018, the U.S. Financial Industry Regulatory Authority (FINRA), a self-regulatory body for brokerages and exchanges in the country asked members firms to report their involvement with cryptocurrencies.
That order precisely stated that member firms must keep their ‘regulatory coordinator informed if they or associated persons or affiliates, engaged, or intended to engage, in activities related to digital assets, including digital assets that are non-securities.’
However, the regulatory body spelled a July 31, 2019, deadline for firms to reach compliance.
With that deadline, though at the corner, FINRA released on July 18 an update to the earlier notice, extending the period for crypto reporting to July 31, 2020.
The notice read,
“FINRA appreciates members’ cooperation over the past year and is encouraging firms to continue keeping their Regulatory Coordinators abreast of their activities related to digital assets until July 31, 2020.”
The list of crypto-related activities that FINRA outlined for its members to report notably includes,
Purchases and sales carried out with cryptocurrencies.
Creation, management or participation of a crypto exchange, fund or derivatives product
Participation in an ICO or Pre-ICO
Facilitating the clearing or distribution of cryptocurrencies and
Recording cryptocurrencies using blockchain or distributed ledger technology
FINRA also recommended that member firms report ‘any other use of blockchain technology,’ with the only exception being if the said agency had earlier notified the regulatory body.
Regarding earlier submissions, FINRA further mentioned that “unless a change has occurred,” an additional notice is not necessary.
Meanwhile, in another report related to FINRA, Stmarket.co noted earlier this month that the body in line with the U.S SEC issued a guideline clarifying broker-dealer custody of digital asset securities.