iAs part of its ongoing effort to supervise broker-dealers conducting transactions in digital assets, FINRA recently issued Notice 20-23. The Notice encourages FINRA members to continue to keep FINRA updated on a firm’s activities relating to digital assets that have not been previously disclosed.
Examples of the types of activities of interest to FINRA include the following:
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purchases, sales or executions of transactions in digital assets;
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purchases, sales or executions of transactions in a pooled fund investing in digital assets;
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creation of, management of, or provision of advisory services for a pooled fund related to digital assets;
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purchases, sales or executions of transactions in derivatives tied to digital assets;
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participation in an initial or secondary offering of digital assets (e.g., ICO, pre-ICO);
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creation or management of a platform for the secondary trading of digital assets;
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custody or similar arrangement of digital assets;
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acceptance of cryptocurrencies from customers;
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mining of cryptocurrencies;
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recommending, soliciting or accepting orders in cryptocurrencies and other virtual coins and tokens;
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displaying indications of interest or quotations in cryptocurrencies and other virtual coins and tokens;
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providing or facilitating clearance and settlement services for cryptocurrencies and other virtual coins and tokens; and
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recording cryptocurrencies and other virtual coins and tokens using distributed ledger technology or any other use of blockchain technology.
The Notice applies to activities conducted through July 31, 2021.
