Because market trends can shift rapidly, firms must remain vigilant in upholding ethical standards and compliance. As cryptocurrency gains traction and employees increasingly engage in digital asset trading, the need for robust employee trade monitoring becomes paramount to maintain compliance, especially during market volatility.
We’ll delve into the challenges posed by the evolving landscape and explore the significance of employing advanced technology solutions, such as employee trade monitoring software, to navigate these challenges effectively.
Challenges in employee trade monitoring
The surge in cryptocurrency popularity has led to a proliferation of employee accounts, making the task of monitoring trades more complex for Chief Compliance Officers (CCOs). With a growing number of employees working remotely, the collection and review of account statements have become more challenging.
This increased complexity is further amplified by the unique challenges of crypto trading, such as the unknowns of regulations, the emergence of new digital assets almost daily and the inherent volatility of these markets. These factors can make it difficult to assess risk and establish clear guidelines for employee personal trading in the crypto space.
Building a culture of compliance around employee crypto trading
It’s important to note that even with clear regulations, navigating ethical grey areas may arise. Therefore, ongoing monitoring and proactive training remain essential to ensure your employees understand the best practices and adapt to evolving regulations. Best practices include:
- Establishing policies and procedures around monitoring employees’ crypto trade monitoring.
- Regularly reviewing any new rules from the SEC, FINRA, or others which could impact your cryptocurrency policies and procedures.
- Requiring employees to review and attest to the firm’s Code of Ethics.
- Regularly monitoring accounts, holdings and transactions of employees.
- Offering regular training to employees and ensure that they are aware of expectations.
The Role of Technology in Employee Trade Monitoring
Admittedly, monitoring your employees’ crypto trading activities can be a lofty task. To enhance the efficiency of employee trade monitoring, firms should leverage technology solutions designed to automate and streamline the process. An employee trade monitoring software could:
- Validate employee acknowledgment of the Code of Ethics.
- Enable compliance teams to automate the recording and monitoring of personal cryptocurrency and digital asset transactions.
- Implement a pre-clearance workflow to obtain approval for certain cryptocurrency trades before they are executed, mitigating potential conflicts of interest and insider trading risks.
- Proactively identify and resolve potential trading violations with real-time alerts.
- Regularly update and maintain trade limits and restricted lists.
Employee Crypto Trade Monitoring with COMPLY
In the realm of employee crypto trade monitoring, COMPLY™ Digital Asset Trade Monitoring stands out as a comprehensive and reliable solution. Key features include:
- Automatic capture of transactions and holdings from employees’ cryptocurrency accounts.
- Real-time accuracy and comprehensive coverage across various digital asset types.
- Pre-clearance, monitoring, verification and reporting of cryptocurrency trades with established rules and workflows.
- Comprehensive and automated coverage of major crypto exchanges and wallets.
- Simplified compliance documentation through automatic logging of all actions within the software.
By choosing COMPLY, firms gain a trusted partner dedicated to ensuring compliance with confidence.
Ready to navigate the complexities of employee crypto trade monitoring with ease? Let’s talk!