After the collapse of the FTX exchange, FINRA, an American regulator, cryptocurrency started to examine communication applications.
Contact Data Requested from All Cryptocurrency Institutions Members of FINRA
According to an announcement by FINRA, the assessment will require firms to submit all individual communications regarding distributed cryptoassets between July 1 and September 30 this year.
This includes “video, social media, mobile apps and websites” during the review period between the beginning of July and the end of September. Companies will also need to file review and approval processes, as well as compliance and training guidelines.
According to FINRA’s website, regulators such as FINRA conduct “scans” or targeted reviews to gather information that is used to “determine a regulatory response to emerging issues.”
FINRA’s reviews are limited to a small number of firms in order to “reduce the regulatory burden on the majority of firms.”
The move to regulate cryptocurrency communications comes after the globally watched collapse of one of the world’s largest crypto exchanges. FTX and other crypto firms focused on ads targeting individual users during the Super Bowl earlier this year.
According to FINRA, any written (including electronic) message given or made available to more than 25 individual investors in any 30-day period is referred to as “personal communication”. It applies to written communication as well as video, social media, mobile apps and websites.
*Not investment advice.
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