The Financial Industry Regulatory Authority (FINRA) released its annual regulatory report for the year 2024, featuring a dedicated section for the first time that discusses cryptocurrency assets.
The section related to cryptocurrency assets is aimed at companies currently engaged in or intending to engage in cryptocurrency-related activities. The report notes that FINRA's Membership Application Program (MAP) follows SEC guidance to assess proposed cryptocurrency asset securities business lines based on applicable rules, such as the SEC's financial responsibility rules and customer protection rules. Companies would be approved to act as private (non-public) placement agents, operate alternative trading systems for cryptocurrency asset securities, and provide custody services.
FINRA also requires its members to notify the organization when engaging in non-securities cryptocurrency asset activities. Additionally, individuals involved in external business activities related to cryptocurrency assets, private securities transactions, and cryptocurrency mining operations are also required to inform FINRA.
Reportedly, FINRA is a self-regulatory organization in the United States responsible for overseeing securities broker-dealers. FINRA operates under the supervision of the U.S. Securities and Exchange Commission (SEC).