{"id":511924,"date":"2022-11-18T13:25:58","date_gmt":"2022-11-18T10:25:58","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ftx-meltdown-triggers-finra-into-probing-crypto-comms\/"},"modified":"2022-11-18T13:25:58","modified_gmt":"2022-11-18T10:25:58","slug":"ftx-meltdown-triggers-finra-into-probing-crypto-comms","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ftx-meltdown-triggers-finra-into-probing-crypto-comms\/","title":{"rendered":"# FTX meltdown triggers FINRA into probing crypto comms"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2714693ca20\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2714693ca20\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ftx-meltdown-triggers-finra-into-probing-crypto-comms\/#%E2%80%9D_FTX_meltdown_triggers_FINRA_into_probing_crypto_comms_%E2%80%9C\" >&#8221; FTX meltdown triggers FINRA into probing crypto comms &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_FTX_meltdown_triggers_FINRA_into_probing_crypto_comms_%E2%80%9C\"><\/span>&#8221; FTX meltdown triggers FINRA into probing crypto comms &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvNTFhZjUwODQtMzNlOC00YTIwLWFkOGUtMjM2MjQzYjg0M2E2LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-887bb764>The Financial Industry Regulatory Authority (FINRA), the American self-regulatory organization, has launched an examination into the firm\u2019s retail communications concerning crypto products and services offered by them.<\/p>\n<p>The regulatory body, in an official notice,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.finra.org\/rules-guidance\/guidance\/targeted-examination-letters\/crypto-asset-communications\">announced<\/a>\u00a0that it is launching a targeted exam on firms on how they handled retail communications between July 1 and the end of September. The decision to examine crypto-related retail communications comes in the wake of the collapse of the FTX crypto exchange.<\/p>\n<p>Any written (including electronic) message that is issued or made available to more than 25 retail investors within any 30-day period is referred to as a \u201cretail communication\u201d according to FINRA. It also <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lies to video, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a>, mobile apps and websites in addition to writing communications.<\/p>\n<p>In its exam notice, FINRA asked firms to provide additional information for each individual communication, such as the date it was first made public, whether it was filed with FINRA\u2019s advertising regulation department, whether a principal at the firm approved the communication and identifying the crypto assets or services mentioned in the communication.<\/p>\n<p>In addition to any relevant compliance rules or materials, FINRA has requested that firms submit written supervisory procedures for the \u201cexamination, approval, record-keeping and dissemination\u201d of the communications. It also requested information on any contracts made with affiliates on the production or distribution of the messages, as well as any knowledge such affiliates might have regarding the target audience.<\/p>\n<p>The probe began on Nov. 14 with an aim to investigate whether any of the retail crypto products or services were falsely advertised. At the peak of the crypto bull run, crypto advertisements became the flavor of many brands and celebrities. Crypto ads ruled the Super Bowl 2022 as well, with FTX being one of the most talked about ads at the time.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Thailand SEC to apply strict guidelines for crypto ads<\/em><\/strong><\/p>\n<p>The flood of advertisements became a big concern for regulators given the majority of these advertisements didn\u2019t adhere to any advertisement standards and often hid the risks associated with crypto investments while glorifying the high returns. <\/p>\n<p>Many celebrities like Tom Brady, Larry David and Steph Curry, who were brand ambassadors for the FTX\u00a0crypto exchange, are facing a class-action lawsuit. The lawsuit alleged that celebrities advertised FTX\u2019s fraudulent scheme that was designed to take advantage of unsophisticated investors from across the country.<\/p>\n<p>At the start of the year, authorities in the United Kingdom, Singapore and Spain tightened the requirements around crypto firms\u2019 marketing messaging and customer recruitment practices. Many other countries and global brands have also imposed restrictions on crypto advertisements amid market turmoil.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ftx-meltdown-triggers-finra-into-probing-crypto-comms\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; FTX meltdown triggers FINRA into probing crypto comms &#8220; The Financial Industry Regulatory Authority (FINRA), the American self-regulatory organization, has launched an examination into the firm\u2019s retail communications concerning crypto products and services offered by them. The regulatory body, in an official notice,\u00a0announced\u00a0that it is launching a targeted exam on firms on how they&#8230;<\/p>\n","protected":false},"author":1,"featured_media":511925,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvNTFhZjUwODQtMzNlOC00YTIwLWFkOGUtMjM2MjQzYjg0M2E2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[83536,74894,74863,75269,70934],"class_list":["post-511924","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-advertisement","tag-blockchain","tag-cryptocurrencies","tag-us-government","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/511924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=511924"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/511924\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/511925"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=511924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=511924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=511924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}