FINRA gives companies more chances to comply with crypto data request

The US Financial Industry Regulatory Authority (FINRA) has extended the deadline of its request where member companies will provide data regarding crypto activities that they are involved in. The previous deadline was set for July 31, 2019, but it has now been moved to July 31, 2020.

In a notice that was issued on July 18, FINRA noted that it has been receiving cooperation from member companies in providing information on their or their affiliates’ crypto activities to regulators. However, it would appear that not all of them have done so since it is still “encouraging firms” to do so.

“FINRA appreciates members’ cooperation over the past year and is encouraging firms to continue keeping their Regulatory Coordinators abreast of their activities related to digital assets until July 31, 2020,” the new notice reads.

The extension provides corporations with more chances to comply with the request that was initially issued last year. At that time, FINRA asked its member companies to “keep their Regulatory Coordinator informed if the firm, or its associated persons or affiliates, engaged, or intended to engage, in activities related to digital assets, including digital assets that are non-securities.”

While it would appear that the regulatory authority has made some headway in this regard, not all of the member firms have complied with the request. Hence, the extension of the deadline.

As for what kinds of activities FINRA is asking companies to report, these include the buying, selling, or transacting in crypto coins, ICOs, crypto derivatives, or funds investing in digital assets, CoinDesk notes. Even the use of blockchain technology itself is something that the regulatory body is asking firms to include in the compliance.

This is just one of many efforts that government bodies are undertaking in order to get a firm grasp on the crypto industry, particularly with regards to exchange platforms. Compliance by member companies to FINRA’s request is expected to result in better regulations for the industry.