BROWSE BY TOPIC
- Bad Brokers
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Wall Street News
- Investments - Private
- Rules & Regulations
- Bad Advisors
- Boiler Rooms
- Terminations/Cost Cutting
- General News
- Donald Trump & Co.
- Regulatory Sanctions
- Big Banks
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Wall Street News
E*Trade Entering Crypto Trading, While FINRA Urges Caution
by Howard Haykin
According to The Alert Investor, a FINRA bulletin with assistance from the BBB Institute [for Marketplace Trust(?)], service providers have emerged to assist users in managing their cryptocurrencies. Notably, cryptocurrency online platforms have emerged, enablng users to buy, sell, exchange, and in some cases, store cryptocurrencies. While these platforms are colloquially referred to as "exchanges," they typically are not registered as such in the U.S. (in contrast to entities such as the NYSE that function as national securities exchanges) and may not be subject to any regulatory oversight.
In brief, here are some tips when using a cryptocurrency trading platform to obtain or transfer your cryptocurrencies:
1. THERE ARE DIFFERENT TYPES OF PLATFORMS. Know what each platform offers, and what safeguards, if any, are in place to protect users. Can you trade and exchange "fiat" currencies such as U.S. Dollars or Euros for cryptocurrencies and vice-versa? Or, can you only engage in "cryptocurrency-to-cryptocurrency" exchanges?
2. THEFT HAPPENS. Theft of cryptocurrencies by cyberattack is real. Other thefts are also possible, like theft or loss of keys that provide access to cryptocurrencies, effectively making it difficult if not impossible to recover them.
3. PLATFORMS AREN'T FDIC INSURED. If a cryptocurrency trading platform is hacked or encounters some other technical challenge that causes the keys on the platform to be lost, you could lose all of your investment.
4. LOSSES ARE NOT SIPC-PROTECTED. You're not protected against losses of crypto assets by SIPC, which protects customers of SIPC member brokerage-firms against loss of cash or securities in certain circumstances.
5. YOU WILL BE CHARGED FEES AND MAY NOT ALWAYS GET THE BEST PRICE FOR YOUR TRADE. Crypto trading platform fees vary, sometimes significantly from one platform to another, while buy and sell prices can also vary significantly from one platform to another.
6. YOU MAY NOT GET IMMEDIATE ACCESS TO YOUR CRYPTOCURRENCY. Since many of these platforms are relatively new, they may not be scaled to handle large volumes of customer requests – which can possibly delay investors' access to their holdings.
7. TEST THE PLATFORM. As with any new technology, it might be a good idea to start small and do a little testing.
8. WATCH OUT FOR SCAMS. Watch out for scammers and bad actors who seek to lure unsuspecting investors into storing their public and private keys with fake trading platforms. Alternatively, fraudsters may pose as fake tech support staff for legitimate platforms.