Get crypto-Broker soon finally approved? The U.S. securities and exchange Commission SEC and the approval authority FINRA expressed to the persistent delays. An early registration is therefore not in sight. The official Statement is, nevertheless, insight into regulatory dilemmas.By Anton Livshits
9. July 2019BTC$12.267,00 3.28%part Facebook Twitter LinkedIn xing mail
Bitcoin is aiming at the American stock exchanges. Numerous companies hope to be able soon, the Broker role for the stock market trading with crypto-Assets to take. For this purpose, they have submitted the appropriate applications. As you know, the authorities reacted to this, only behavior. The permits are still pending.
The securities and exchange Commission United States Securities and Exchange Commission (SEC), as well as the approval authority, Financial Industry Regulatory Authority (FINRA) expressed on the 8.7 in a public statement to the continuing delays. The O-sound: The stock exchange trading with crypto-Assets poses additional regulatory problems for which a satisfactory solution is still pending. In the centre of the regulatory concerns of the Customer Protection Rule the SEC is.
This customer protection rule is the protection of investors:
SEC certified crypto-Assets insufficient customer protection
the purpose of the customer protection rule is to protect customer securities and funds in possession of a broker dealer, to prevent investor losses, or damages in the event of bankruptcy of a broker dealer, and to improve the ability of authorities to Monitor and prevent unfair business practices. In simplified terms, the customer protection rule, Broker-dealers, that they protect customer assets and customer's separate assets from the assets of the company, which increases the likelihood that the securities and cash of the customer in the event of bankruptcy of the Broker-Dealers may be returned to you.
The SEC is seeing in terms of crypto-Assets difficulties, the Customer Protection Rule to implement. This is, above all, questions of safe-keeping. The authors of the report note that Bitcoin exchanges were repeated steels will be the target of Hacks and a thief. The SEC and FINRA, however, also with other concerns to face.
Some of them relate to the digital Nature of crypto-Assets. The report expressly points out that the authorities distinguish between the shape of securities. For digital Assets the same regulatory Standards as those in paper form apply. From this, however, difficulties arise. The unique ownership of a digital asset could be demonstrated according to the SEC, only difficult. Finally, it is not excluded that still other copies of the Private Keys are in circulation. Also in the accounting of the opinion of cryptographic certified Broker similar difficulties.SEC and FINRA to show a co-operative
in addition to the just outlined problems, the opinion relates to a number of other questions. So also such Broker-models will be discussed, without a custody of the Assets.
Ultimately, the authors of the report not to designate a clear period of time in the with permits is. All in all, signal SEC and FINRA, however, a continued commitment to the conversation: "The special circumstances under which a Broker-Dealer Digital Asset Securities in a manner that could keep the employees [SEC and FINRA] to believe that they would correspond to the customer protection Directive, will continue to be discussed, and the employees are willing to continue to be in touch with companies that pursue this business."
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