{"id":10083,"date":"2024-01-24T14:01:36","date_gmt":"2024-01-24T12:01:36","guid":{"rendered":"https:\/\/forklog.com\/en\/finra-uncovers-violations-in-70-of-crypto-asset-advertisements\/"},"modified":"2024-01-24T14:01:36","modified_gmt":"2024-01-24T12:01:36","slug":"finra-uncovers-violations-in-70-of-crypto-asset-advertisements","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/finra-uncovers-violations-in-70-of-crypto-asset-advertisements\/","title":{"rendered":"FINRA Uncovers Violations in 70% of Crypto Asset Advertisements"},"content":{"rendered":"<p>A targeted investigation by <span data-descr=\"Financial Industry Regulatory Authority in the USA\" class=\"old_tooltip\">FINRA<\/span> has revealed potential breaches of public communication rules in 70% of informational materials concerning cryptocurrency products.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">We have identified potential violations of FINRA Rule 2210 (Communications with the Public) in 70% of crypto asset communications we reviewed, according to a report published today on the results of a targeted exam. Learn more \u25b6\ufe0f <a href=\"https:\/\/t.co\/ApN5EZibOD\">https:\/\/t.co\/ApN5EZibOD<\/a> <a href=\"https:\/\/t.co\/CFlFICQozS\">pic.twitter.com\/CFlFICQozS<\/a><\/p>\n<p>\u2014 FINRA (@FINRA) <a href=\"https:\/\/twitter.com\/FINRA\/status\/1749818602453123244?ref_src=twsrc%5Etfw\">January 23, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In November 2022, the self-regulatory organization launched an initiative to examine the practices of certain member firms that actively engage with retail clients regarding crypto assets and related services.<\/p>\n<p>The focus is on compliance with FINRA Rule 2210, which, among other things, requires that broker-dealer communications with clients be &#8220;fair and balanced, and provide a sound basis for evaluating the facts regarding the products discussed.&#8221; The rules explicitly prohibit &#8220;false, exaggerated, unwarranted, promissory, or misleading statements.&#8221;<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;As this market grows and interest in cryptocurrencies increases, the potential harm caused by problematic communications has also risen. [\u2026] To have sufficient information to evaluate investments or services in crypto assets, messages must clearly describe their risks and features,&#8221; stated FINRA&#8217;s Director of Advertising Regulation, Aira Gluck.<\/p>\n<\/blockquote>\n<p>The organization reviewed approximately 500 informational materials related to offerings for retail investors. Among the most common violations identified by FINRA were:<\/p>\n<ul class=\"wp-block-list\">\n<li>false claims that crypto assets function as money or its equivalents;<\/li>\n<li>comparing products to traditional assets without providing a reliable basis for comparing their respective features and risks;<\/li>\n<li>unclear and misleading explanations of how crypto assets work and their functions;<\/li>\n<li>failure to clearly explain to investors how digital currencies are issued, stored, or sold;<\/li>\n<li>false statements about the extent to which products are protected by securities laws and FINRA rules.<\/li>\n<\/ul>\n<p>Back in January 2022, the organization&#8217;s head, Robert Cook, announced stricter requirements for crypto market participants concerning advertising and disclosure.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A targeted investigation by FINRA has revealed potential breaches of public communication rules in 70% of informational materials concerning cryptocurrency products. We have identified potential violations of FINRA Rule 2210 (Communications with the Public) in 70% of crypto asset communications we reviewed, according to a report published today on the results of a targeted exam. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10082,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1312,36,26],"class_list":["post-10083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-finra","tag-regulation","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/10083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=10083"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/10083\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/10082"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=10083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=10083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=10083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}