FINRA Unscripted Podcast: Membership Application Program – Reviewing and Approving Digital Asset Firms
This is a summary of a recent FINRA podcast on Membership Application Program.
Category: Digital Assets
Custody of Cryptocurrency: Considerations for Broker-Dealers
It is evident that the U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) are constantly putting efforts forward to navigate the unchartered waters of cryptocurrency. Just days before Blockstack’s Reg A+ token offering received SEC approval, the SEC and FINRA issued a joint statement to provide guidance and encourage innovation and ongoing discussions with market participants on the idea of the custody of cryptocurrency for broker-dealers.
Cryptocurrency Reg A+ Offering Approved by the SEC
Last month, the U.S. Securities and Exchange Commission (SEC) finally gave a blockchain startup company, Blockstack, approval to sell bitcoin-like digital tokens directly to investors— to some extent. The SEC has previously sued and fined several cryptocurrency companies for initial coin offerings (ICO) that the agency said violated securities law.
SEC Strategic Hub for Innovation and Financial Technology (FinHub)
On October 18, the U.S. Securities and Exchange Commission (SEC) announced the launch of the agency’s Strategic Hub for Innovation and Financial Technology (FinHub). But what is the “FinHub”?
What is an Initial Coin Offering (ICO)? – Part II
[Continued from What is an Initial Coin Offering (ICO)? – Part I]
Online Platforms that Facilitate Trading in ICO Tokens are Not Registered Exchanges
There are no ICO platforms currently registered as exchanges. Further, the SEC has stated that it neither regulates these platforms as exchanges nor reviews the digital assets that may be listed or traded on these platforms. Many fraudulent platforms refer to themselves as exchanges to provide a sense of legitimacy and make investors assume they are regulated entities or meet the regulatory requirements and standards of a national securities exchange.
What is an Initial Coin Offering (ICO)? – Part I
Digital assets such as cryptocurrencies, as well as other crypto coins and tokens, may be offered to investors in the form of an Initial Coin Offering (ICO). But what is an ICO? And why are they such a regulatory hot topic in the securities industry currently?