Blockchain
Crypto Compliance in Focus: FINRA Unveils Key Insights on Member Firms’ Digital Asset Activities
The Financial Industry Regulatory Authority (FINRA) has released a detailed report shedding light on the involvement of its member firms in crypto asset activities, along with the compliance challenges they face. This update is based on a 2023 survey sent to nearly 600 member firms, of which about 390 were found to be engaged in various forms of crypto-related activities. These activities range from private placements of crypto assets and operation of alternative trading systems (ATSs) for crypto securities, to providing custody services and engaging in blockchain initiatives.
Scope of Crypto Asset Involvement
The survey revealed that many firms are involved in a broad spectrum of crypto-related activities, often in collaboration with affiliates or third parties. These include proprietary trading, running crypto asset trading platforms, offering custodial services, and providing investment banking services for crypto-related entities. Additionally, FINRA identified various outside business activities related to crypto, such as crypto asset trading, managing investment funds, selling crypto asset private placements, and participating in crypto mining.
Compliance Challenges and Regulatory Concerns
FINRA’s report highlights several compliance issues that member firms face in the rapidly evolving crypto asset sector. The key areas of concern include public communications, supervision, anti-money laundering (AML) compliance, and adherence to standards of commercial honor and trade principles. Notably, FINRA observed misrepresentations regarding federal securities law protections in crypto activities, insufficient due diligence for crypto private placements, and inadequate supervision of crypto-related activities.
Moreover, FINRA identified market abuse risks, such as potential pump-and-dump schemes involving crypto assets and market manipulation in crypto securities traded on registered ATSs.
Guidance for Firms
FINRA’s findings underscore the importance of proactive regulatory compliance in the crypto sector. The organization encourages member firms to enhance their supervisory programs, controls, and compliance policies, with a particular focus on areas like cybersecurity, AML compliance, public communications, and due diligence. FINRA also emphasizes the need for ongoing dialogue between firms and their risk monitoring analysts to navigate the regulatory challenges posed by crypto asset activities effectively.
As the crypto market continues to grow, FINRA’s insights provide valuable guidance for firms striving to operate within a complex and evolving regulatory landscape.
Source: natlawreview.com
The post Crypto Compliance in Focus: FINRA Unveils Key Insights on Member Firms’ Digital Asset Activities appeared first on HIPTHER Alerts.
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Blockchain
Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin)
Blockchain technology continues to drive innovation across industries, reshaping finance, infrastructure, and philanthropy. Today’s news roundup explores exciting developments in blockchain ETFs, tokenization funding, quantum-resistant chips, public blockchain initiatives, and impactful social projects. Here’s a deep dive into the latest blockchain headlines:
BlackRock ETF Embraces Blockchain with First Muni Bond Purchase
BlackRock’s blockchain-focused ETF has made its first foray into municipal bonds, signaling increased confidence in integrating blockchain technology with traditional finance. The ETF’s strategic investment demonstrates how blockchain can enhance transparency and efficiency in bond markets.
By tokenizing municipal bonds, BlackRock aims to simplify trading and settlement processes while reducing associated costs. This development underscores the growing role of blockchain in transforming financial instruments and fostering greater market accessibility.
Source: Yahoo Finance
Plume Secures Funding for Tokenization Platform
Blockchain fintech company Plume has raised significant funding to advance its tokenization platform. The company’s innovative approach enables businesses to convert real-world assets into digital tokens, streamlining asset management and unlocking liquidity.
Tokenization is rapidly gaining traction as a game-changer in sectors such as real estate, art, and commodities. Plume’s success reflects a broader trend of investment in blockchain solutions that bridge the gap between traditional assets and decentralized technologies.
Source: Fortune
SEALSQ and Hedera Partner for Quantum-Resistant Blockchain Chips
SEALSQ and Hedera have announced a groundbreaking collaboration to develop quantum-resistant chips designed to secure blockchain infrastructure. These advanced chips will provide robust protection against future quantum computing threats, ensuring the integrity of blockchain networks.
As quantum computing capabilities evolve, safeguarding blockchain ecosystems becomes increasingly critical. This partnership highlights the importance of proactive measures in maintaining the resilience and trustworthiness of decentralized systems.
Source: The Quantum Insider
Deutsche Bank’s Public, Permissioned Blockchain Initiative
Deutsche Bank’s Layer 2 blockchain solution is set to go public and operate as a permissioned network, according to its tech partner. This initiative aims to strike a balance between accessibility and security, leveraging blockchain to streamline financial services and enhance operational efficiency.
The decision to adopt a public, permissioned model reflects a growing trend among enterprises seeking to harness the benefits of decentralization while maintaining control over sensitive data. Deutsche Bank’s approach could serve as a blueprint for other financial institutions exploring blockchain adoption.
Source: CoinDesk
KuCoin’s “Light Up Africa” Initiative Brings Hope to Thousands
Cryptocurrency exchange KuCoin has made a significant impact through its “Light Up Africa” donation ceremony in Ghana, benefiting 36,000 children across the continent. The initiative combines blockchain technology with philanthropy to address energy poverty and support education.
By leveraging blockchain for transparency in charitable contributions, KuCoin sets an example of how the crypto industry can drive meaningful social change. The project demonstrates the potential of blockchain to empower communities and foster sustainable development.
Source: PR Newswire
Industry Implications and Key Takeaways
Today’s developments highlight the transformative potential of blockchain across multiple domains:
- Integration with Traditional Finance: BlackRock’s ETF underscores the synergy between blockchain and established financial systems.
- Tokenization Trends: Plume’s funding success reflects the growing demand for digital asset solutions.
- Quantum-Resistant Technologies: SEALSQ and Hedera’s partnership addresses emerging cybersecurity challenges.
- Enterprise Blockchain Adoption: Deutsche Bank’s public, permissioned network showcases the adaptability of blockchain in financial services.
- Social Impact: KuCoin’s philanthropic efforts illustrate blockchain’s capacity to drive positive societal outcomes.
The post Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin) appeared first on News, Events, Advertising Options.
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