FINRA says majority of crypto communications violate investor protection guidelines
Nearly 70% of crypto communications violated FINRA’s guidelines, a recent survey says. The American Financial Industry Regulatory Authority (FINRA) has just published a detailed report on a survey of 500 retail communication channels related to cryptocurrencies. According to the findings, published in Jan. 2024, approximately 70% of communications since late 2022 have violated FINRA’s Rule 2210, a rule that governs broker-dealer communications with the public. While FINRA did not disclose who exactly violated the rule, the regulator noted that some firms “failed to clearly differentiate in communication s, including mobile apps, between Crypto Assets offered through affiliates or third parties and those offered directly by the member.” “This update does not create new legal or regulatory requirements or new interpretations of existing requirements, nor does it relieve firms of any existing obligations under federal securities laws and regulations. Rath...