Across the United States and around the world, government agencies have expressed concerns about the way that cryptocurrency advertising and disclosure to potential and current investors in the market. This includes the fact that the crypto asset is unregulated and that the broker may play a different role than in a traditional investment with other types of securities or investment classes.
The Regulatory Bodies
In the USA, the SEC or the Securities and Exchange Commission and other federal regulators are focused on the actual regulatory structure and reporting of the purchase and use of cryptocurrency. This is in response to the concerns expressed by these agencies and their counterparts around the world that cryptocurrency, due to its unregulated nature, could be used to fund terrorism or launder money to get around banking and financial laws and regulations.
Working to Inform Investors
Instead of focusing on the regulatory rules, FINRA, or the Financial Industry Regulatory Authority, wants to focus in on disclosure and advertising. As part of cryptocurrency news update, this could potentially change how investors receive information about these currently unregulated types of investments.
Currently, FINRA is still in the reporting phase, but it is interesting to note this cryptocurrency news update has already caused an impact on the market. The members of FINRA are working on ways to clearly communicate to investors the unregulated nature of cryptocurrency.
At the same time, these member firms are also focused on following standard financial institute KYC or know your customer protocols to ensure that any cryptocurrency traders are identified and verified before transactions are processed.
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