Is It Outside Business, Personal Trading, or Insider Trading?
In the absence of long-term regulatory solutions to the whirlwind that is digital or cryptocurrency, we have been provided with guidance on how to apply current regulations to this evolving market. The regulators are making it clear that industry professionals will be held accountable for actions that step outside the principles and spirit of current securities rules and regulations.
In an effort to assist our clients and help them navigate the shifting sands of evolving regulations, FIRE Solutions has updated all relevant Firm Element CE courses to include information about the current regulatory framework, and how it applies to reporting requirements for cryptocurrency. The updates include detailed information that will answer the following questions:
- Personal Trading of Initial Coin Offerings (ICOs) — how does the SEC define the structure of an ICO?
- Personal Trading of Cryptocurrency (Secondary Trading) — who regulates the trading platforms and what kinds of risks are presented when representatives engage in trading cryptocurrencies?
- Private Securities Transactions and Investments Containing Cryptocurrency — when would a cryptocurrency transaction be considered a private securities transaction, and how should firms monitor this activity?
- Outside Business Activities (OBA) — what type of cryptocurrency activities would require reporting as an OBA, and what kind of risks does this present to your firm?
- Supervision — where will the SEC be looking next with the recent flurry of subpoenas, and who could be identified as a gatekeeper for illegal activities (e.g., attorneys, consultants, broker/dealers)? What can our firm do to mitigate the risks presented by cryptocurrency activities?
As with any uncharted regulatory territory, proceed with caution and awareness. Stay current with changing regulations and educate yourself about the regulatory pitfalls. If regulation is not clear, stop and investigate before you proceed, and ask yourself, “What am I willing to defend in a regulatory audit?”
For more information about the course updates, contact our sales department.
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