In a recent, annual enforcement actions report, the North American Securities Administrators Associations (NASAA) offers an overview of recent securities enforcement efforts in the United States. The report summarizes these efforts using information compiled from the NASAA’s most recent annual survey of U.S. members, or state securities regulators. In the report, the NASAA identifies threats against investors, including technological advancements such as cryptocurrency and the metaverse. In the report, the regulator says, “State securities regulators have been, are and will continue to work to protect investors from threats derived from the past, the present and the future. Simply put, our mission is an important today as it was more than a century ago and will be a century from now.”
Enforcement actions for bad actions who leverage cryptocurrencies
As the market for investments incorporating cryptocurrencies continues to evolve, state securities regulators continue working to promote confidence in this new market while ensuring legitimate firms embracing blockchain technology can lawfully raise capital from the public.
Enforcement actions for bad actions who leverage metaverses
Over the past five years, state regulators have filed 2,391 records with the Securities and Exchange Commission (SEC) that refer to the metaverse. More than 2,100 of these records were filed in 2022. That means that nearly all the securities filings referring to the metaverse were submitted within the nine months before this report was published. Enforcement actions include:
- Filing charges.
- Requiring firms to comply with applicable securities laws while ensuring the protection of investors.
- Filing securities actions to stop fraudulent metaverse securities.
- Forcing firms to shut down operations.
With hefty ramifications for failing to adhere to the NASAA’s regulations, firms must ensure that they remain compliant or risk the financial and reputational consequences. In other words, now is the time to take the steps necessary to protect your firm.
Many firms face the need to change their product line-up, service offerings, geographies served or all of the above in order to stay competitive in today’s fast-moving landscape. However, while innovation may be the cornerstone to on-going growth and success, ensuring your compliance program keeps up with those innovations is just as critical to navigating this changing landscape. Protecting your firm and your clients from bad actors taking advantage of new risk points.
Ready to learn more about how the ComplySci Platform can help you remain in compliance today and tomorrow? Schedule a demo today!