FINRA Tightens Grip on Crypto in 2024 Oversight, Per FINRA 2024 Regulatory Report

FINRA’s 2024 report raises the bar for crypto oversight, with new guidelines and a focus on compliance in advertising and security classification
FINRA Tightens Grip on Crypto in 2024 Oversight Report

In their 2024 Annual Regulatory Oversight Report, the Financial Industry Regulatory Authority (FINRA) made a significant announcement by devoted a full chapter to cryptocurrency assets. Its choice also shows that SFA has been focusing more on the hazards that investors face in the rapidly expanding cryptocurrency market.

FINRA’s study outlines key elements for member companies engaged in cryptocurrency-related operations for the first time. This includes figuring out whether cryptocurrency assets are security safeguards, having reliable cybersecurity and anti-money laundering measures in place, and having compliant and transparent retail communications.

The study also mentions that FINRA is concerned about a significantly greater rate of non-compliance with regulations in cryptocurrency-related advertising when compared to other products. This suggests that more adherence to regulations and heightened awareness are required in this area of concern.

This is further supported by the recent steps the SEC has taken to increase oversight of the cryptocurrency sector, as FINRA has significantly increased its focus on it. If this pattern continues, there may be stricter laws or enforcement measures implemented soon.

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