FINRA Asks Firms to Disclose Activities in Digital Assets

FINRA asked that member firms notify their risk-monitoring analysts if the firms currently engage in, or intend to engage in, any activities involving digital assets.

In the regulatory notice, FINRA requested continuing disclosures on:

• transactions in digital assets, pooled funds investing in digital assets and derivatives (e.g., futures and options) tied to digital assets;

• participation in an initial or secondary offering of digital assets (e.g., an initial coin offering ("ICO") or pre-ICO);

• the management of a platform for the secondary trading of digital assets;

• the acceptance of cryptocurrencies (e.g., Bitcoin) from customers;

• the mining of cryptocurrencies;

• clearance and settlement services for cryptocurrencies; and

• the use of blockchain technology, particularly when recording cryptocurrencies using distributed ledger technology.