As part of its ongoing effort to supervise broker-dealers conducting transactions in digital assets, FINRA recently issued Notice 20-23. The Notice encourages FINRA members to continue to keep FINRA updated on a firm’s activities relating to digital assets that have not been previously disclosed.

Examples of the types of activities of interest to FINRA include the following:

  • purchases, sales or executions of transactions in digital assets;
  • purchases, sales or executions of transactions in a pooled fund investing in digital assets;
  • creation of, management of, or provision of advisory services for a pooled fund related to digital assets;
  • purchases, sales or executions of transactions in derivatives tied to digital assets;
  • participation in an initial or secondary offering of digital assets (e.g., ICO, pre-ICO);
  • creation or management of a platform for the secondary trading of digital assets;
  • custody or similar arrangement of digital assets;
  • acceptance of cryptocurrencies from customers;
  • mining of cryptocurrencies;
  • recommending, soliciting or accepting orders in cryptocurrencies and other virtual coins and tokens;
  • displaying indications of interest or quotations in cryptocurrencies and other virtual coins and tokens;
  • providing or facilitating clearance and settlement services for cryptocurrencies and other virtual coins and tokens; and
  • recording cryptocurrencies and other virtual coins and tokens using distributed ledger technology or any other use of blockchain technology.

The Notice applies to activities conducted through July 31, 2021.