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US Financial Industry Plans To Investigate Crypto Firms’ Communications

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US Financial Industry Plans To Investigate Crypto Firms
US Financial Industry Plans To Investigate Crypto Firms

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To say that the finance market has been put inside the shredder over the past few days would be an understatement. Bitcoin barely stands on its $16k support, and Ethereum is struggling to stay afloat at $1.2k. And by all accounts, the entire market is so bearish that even the staunchest crypto advocates have started to rethink their decisions to put faith in speculative assets. FTX is to blame for all of this, and we are about to get some justice served. 

Multiple reports say that FINRA, the US Financial Industry Regulation Authority is about to investigate the communication processes of all the cryptocurrency firms. The aim is to learn how the market is hyped on social media, mobile applications, and websites. It seems that we will see a lot fewer statements such as “to the moon” in the near future. 

What is FINRA Planning

It is FINRA’s responsibility to watch over the activities of brokerage firms and the exchange markets of the USA. So far, it has only passively paid attention to the crypto market. The most we could find on the crypto markets on FINRA’s official website were explanations about certain terminologies and a passing reference to how cryptocurrency exchanges aren’t registered with the SEC. 

However, after FTX, the world’s second-largest cryptocurrency exchange triggered the second crash of 2022, FINRA has decided to pay attention to see how retail communications are being conducted in the crypto space. 

In the announcement made on Monday, FINRA stated that it is “conducting a targeted exam of firm practices regarding retail communications concerning Crypto asset and Services.”

What are the Elements of The FINRA announcement?

According to the announcement, the cryptocurrency exchanges must provide details of the retail communications within cryptocurrency exchanges.

Below listed is a brief overview of the details asked by FINRA.

Details about the Crypto Asset

Cryptocurrency firms must provide all the retail communication concerning crypto assets, from talking about their trade to holding them. 

Documents concerning Supervision Procedures

FINRA is asking cryptocurrency firms to provide all the details about the supervisory procedures they have implemented to oversee each asset. The details range from review, approval and records kept to the communication related to them. 

Compliance policy detail

Crypto firms must submit all the details concerning compliance policies, manuals, training materials, compliance bulletins, and more. 

Details of all the written agreements

FINRA is asking cryptocurrency firms to divulge information about agreements they have signed with parties for marketing. The details must also include how the customer information is being used. 

The long and short of that is FINRA now wants crypto firms to get information from all sources, from social media to promotional videos to mobile applications to websites. Another factor that FINRA’s latest announcement emphasizes is that companies are now required to file compliances and training manuals, as well as approval processes and reviews of their business operation. 

It means that everything from the talks with customer support to the materials that crypto firms use to advertise their product would come under scrutiny. 

FTX Crash That Has Started to Make People Question About Cryptocurrencies

One thing about the crypto market that has been certain is that critics always question everything in the crypto space. But the recent crash has planted the seeds of doubt in even the staunchest advocates of crypto. 

After the Terra crash, how Sam Bankman-Fried appeared as a “good Samaritan” in cryptocurrency has fooled us all. His approach to stopping the contagion of crashes and his approach to promoting other companies to help them survive the crash was something we all admired. However, as we go deeper into the story, evidence of malpractice has started to emerge. YouTuber Cofeezilla, who has always been a staunch (yet constructive) critic of crypto, once jokingly said how SBF once explained the crypto market as a Ponzi scheme. The issue lies in painting cryptocurrencies as only tradable assets and nothing else. 

Thankfully, amidst the darkness of the recent crash, some cryptocurrencies provide something else – a combination of great utility and upside potential that has already garnered the attention of the crypto crowd. 

Investors Could Have Safely Weathered the FTX Storm with this Presale Crypto

The FTX crash has proved that the world needs better crypto analytics and trading tool that doesn’t only rely on traditional indicators but also take social factors into account. Such a platform is Dash 2 Trade. 

Dash 2 Trade is an up-and-coming crypto intel platform that gives insights that ordinary traders never had access to before. By making D2T, its native crypto, the payment mode to use these features, Dash 2 Trade aims to help traders find safe opportunities in the market to get better returns even if the conditions are bearish.

Dash 2 Trade boasts on-chain analytics, presale crypto analysis, strategy builder, and backtesting tool, to name a few. These tools will help traders watch out for the nuanced events within the market that only surface when price charts of crypto assets show a drastic change. 

Due to its utilities, Dash 2 Trade was forging ahead on its third presale stage and has raised upwards of $6.5 million. We suggest that investors who want to make market-beating returns even before D2T lands on exchanges take advantage of this presale and make profits as the token’s price increases in later stages. 

Other presale cryptos to watch out for are Calvaria, IMPT, and RobotEra. Calvaria is close to raising $2 million, IMPT is closing fast on its $13 million target, and the recently introduced RobotEra has moved ahead of its $100k milestone. 

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  5. These Celebrities Are Being Sued After The FTX Collapse

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