FINRA's 2024 Report Highlights Crypto

The Financial Industry Regulatory Authority (FINRA), the United States' financial industry watchdog, has prominently featured cryptocurrency in its 2024 annual report. This inclusion marks a significant step in acknowledging the growing influence and risks associated with the crypto market.

The report advises member firms keen on engaging in crypto-related activities to be vigilant and address regulatory and compliance challenges. The focus this year has expanded to cover crypto asset developments, highlighting the persistent threat posed by malicious actors who exploit low market-cap assets to deceive investors.

FINRA's report emphasizes the presence of manipulative schemes in the crypto space, akin to those in the equities market. These schemes are particularly prevalent with low-priced securities. The report warns of market abuse involving crypto assets that may arise due to differences in market structure between centralized and decentralized exchanges.

Chainalysis recently drew attention to a prevalent scam in the crypto industry — approved phishing scams. These scams involve deceiving the victim into authorizing a malicious blockchain transaction. BeInCrypto also reported on the alarming amount of crypto stolen in 2023 due to increasingly sophisticated phishing scams, with Scam Sniffer monitoring Wallet Drainers that stole nearly $295 million from about 324,000 victims.

FINRA's report serves as a crucial reminder of the unique challenges and risks in the crypto market, urging firms and investors to exercise caution and diligence.

_{Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.}