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Crypto Compliance in Focus: FINRA Unveils Key Insights on Member Firms’ Digital Asset Activities

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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

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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.

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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

Everdome and Alpine Web3 Redefine Fan Engagement with Bold Metaverse Vision

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Alpine Web3 and Everdome are joining forces to push the boundaries of fan engagement through immersive digital experiences. Building on Alpine’s storied motorsport legacy, this partnership will bring fans closer to the action with metaverse pop-up spaces and interactive events.

As Alpine Web3 shifts its focus beyond motorsport, this collaboration aims to redefine sports marketing by merging the physical and digital worlds, offering fans a dynamic and innovative way to connect with their favorite teams and events.

Alpine is a brand with a long and successful history, founded in 1955 by Jean Rédélé and quickly building success across multiple motorsports disciplines. With titles across multiple motor racing disciplines such as the World Rally Championship, 24 Hours of Le Mans, success in F1® racing and the FIA WEC Endurance World Championship, Alpine has constantly innovated for success.

Now Alpine seeks to expand their innovation beyond motorsport, looking for ways to engage new audiences with experiential sports marketing as the real and digital worlds converge.

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This two-way partnership will see Everdome work on a variety of experiential Alpine focussed destinations, kicking off with a series of metaverse pop-up spaces for Alpine Web3, released to coincide with the major sporting events across their race calendar, from Formula One® and beyond.

Everdome will also create interactive events with Alpine Web3 and their partners, allowing global audiences to take one step closer to the action as we explore the future of sports fan engagement together.

Last year, Everdome and Alpine first collaborated with an exclusive metaverse AMA with their F1® driver Pierre Gasly and Binance Fan Token, creating an interactive event where the audience could join with their avatar-likenesses inside a unique environment, bringing them closer to their racing heroes inside a digital world.

“Experiential marketing is on the rise as audiences react positively to immersive, interactive experiences which bring a feeling of deeper involvement with their sporting teams and heroes.’’ said Artur Kaczmarczyk, Chief Growth Officer for Everdome. “This new partnership will explore a future of sports fan engagement, creating a series of activations across the motorsports racing calendar to let global Alpine fans feel closer to the team, drivers and brand.’’

Beginning with metaverse spaces highlighting images and videos from Alpine inside fully interactive, avatar-led digital environments, Everdome will go on to create a dedicated and permanent metaverse footprint for Alpine Racing inside their digital headquarters, showcasing their glorious history, exciting present and promising future.

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“This collaboration with Everdome underlines our commitment to constant innovation through leveraging the latest technology”, said Guillaume Vergnas, Head of Merchandising, Licensing, Esports & Web3 at Alpine. ‘’Motorsport has always been about passion, spectacle and interaction, and with Everdome we seek to allow audiences a taste of the spectacle in a novel digital world.’’

Everdome will introduce their large community of web3 followers and metaverse pioneers to Alpine’s exciting web3 ecosystem, paving the way for some exciting cross-project collaborations, activations and more across 2024 and beyond.

The post Everdome and Alpine Web3 Redefine Fan Engagement with Bold Metaverse Vision appeared first on HIPTHER Alerts.

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Blockchain

Blockchain Technology Market Size to Achieve USD 1,879.30 Billion by 2034

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Blockchain

Blockchain Technology in BFSI Market Is Expected To Reach a Revenue Of USD 258.2 Bn By 2033, at 46.0% CAGR: Dimension Market Research

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