Author: Stephen Nellis
The Financial Industry Regulatory Authority (FINRA) imposed an $850,000 fine on M1 Finance for inadequate supervision related to its use of social media influencers in promoting brokerage accounts. This decision stems from M1 Finance’s marketing strategy, which heavily relied on over 1,700 social media influencers from January 2020 through April 2023. These influencers were instrumental in highlighting the advantages of M1 Finance’s brokerage accounts, appealing to audiences with the prospect of achieving financial freedom and flexibility. However, FINRA’s investigation uncovered several infractions by M1 Finance and its influencers, particularly the dissemination of misleading information about the firm’s services. The regulatory…
Binance, the leading cryptocurrency exchange, has recently taken a significant step by making its venture capital division, Binance Labs, an independent entity. This strategic move, valuated at a staggering $10 billion, signifies a pivotal change under the guidance of Richard Teng, the exchange’s newly appointed CEO. The separation of Binance Labs from the parent company, Binance Group, is a testament to the evolving landscape of the company’s operations, aiming to foster innovation and growth within the cryptocurrency sector. A spokesperson for Binance confirmed to Bloomberg that Binance Labs would now function autonomously, although it will retain its ties with the…
In a landmark ruling, the Commodity Futures Trading Commission (CFTC) achieved a significant victory in its crackdown on fraudulent binary options operations. The US District Court for the Western District of Texas has delivered a final judgment against individuals Jonathan Cartu, Leeav Peretz, Nati Peretz, purportedly from Israel, and the Seychelles-based corporation, Blue Moon Investments Inc. This judgment concludes a legal battle initiated by the CFTC on September 2, 2020. The court has handed down stiff penalties to the defendants for their unlawful actions, holding them accountable for operating illegal, off-exchange binary options and engaging in deceptive practices. They are…
The Securities and Exchange Commission (SEC) is currently under scrutiny from Congress, with calls to pause the green-lighting of new cryptocurrency exchange-traded products (ETPs). Senators Jack Reed and Laphonza Butler, in a letter dated March 11, have voiced their concerns about the risks these products pose to retail investors. They highlighted issues such as insufficient disclosures by brokers and a lack of liquidity in major cryptocurrencies. In their correspondence, the senators expressed their apprehension: “We write to urge the Securities and Exchange Commission (SEC) to take steps to protect investors following its recent approval of the listing and trading of…
JPMorgan Chase & Co has recently been fined $348.2 million by the Federal Reserve and the Office of the Comptroller of the Currency (OCC) for insufficient monitoring of its trading operations, Reuters reports. This development underscores the bank’s challenges in regulating its extensive trading activities, marking a significant regulatory action against one of the largest financial institutions. The fine stems from JPMorgan’s inadequate surveillance of billions of transactions across approximately 30 international trading platforms, spanning nearly a decade from 2014 to 2023. These deficiencies were identified by both the Federal Reserve and the OCC, emphasizing the potential market risks due…
The U.S. Securities and Exchange Commission (SEC) faced a significant website outage late Friday night, stirring speculation and concern among online communities and investors alike. While the SEC’s website was restored during the publication of this incident, the official cause of the downtime remains undisclosed. The absence of an official explanation has fueled rumors on social media, with many suggesting a Distributed Denial of Service (DDoS) attack could be the culprit. Concurrently, the digital currency market experienced notable fluctuations, particularly with Bitcoin (BTC), which saw a 4.4% decline, dropping below the $70,000 threshold. The timing of the SEC website’s issues…
The Vienna Stock Exchange recently announced the addition of Jump Trading Europe B.V. as its latest international trading member, expanding its roster to 70 members. This includes 21 Austrian and 49 international banks and securities firms, enhancing the exchange’s international presence. Jump Trading, with offices in key European cities like Amsterdam, Bristol, London, and Paris, joins the exchange amid a strategic expansion. Christoph Boschan, CEO of the Vienna Stock Exchange, expressed his enthusiasm, stating, “We welcome Jump Trading to the Vienna Stock Exchange and are pleased to further strengthen our global reach. “The majority of the trading turnover is generated…
In 2023, XTB UK, a subsidiary of the publicly listed fintech group XTB, reported a 21% increase in revenue and over a 100% increase in net profit, reflecting the positive trend seen across the entire group. This performance was underpinned by a surge in active clients, growing by over 90%, according to a report highlighted by Finance Magnates. The UK branch, which was established in London in 2015 and is regulated by the FCA, generated £4.7 million in revenue, up from £3.9 million the previous year. The firm, rooted in Poland, focuses on offering CFD products and developing long-term investment…
The Hong Kong Securities and Futures Commission (SFC) has recently issued a stern warning against the cryptocurrency exchange Bybit, pointing out its unauthorized offerings to investors. This cautionary notice comes in light of Bybit’s operations without the necessary licensing, spotlighting the dangers investors might face. The SFC’s alarm bell rings for 11 of Bybit’s offerings, branding them as suspect and risky for those putting their money into them. The regulator’s concerns extend to a variety of Bybit’s products, including but not limited to futures contracts, options, leveraged tokens, and a slew of other cryptocurrency-centric services. These offerings, as per the…
In 2023, the Cyprus Securities and Exchange Commission (CySEC) executed a rigorous oversight campaign involving over 700 inspections of entities under its purview, utilizing both on-site and remote methodologies, culminating in fines exceeding $2.2 million. These inspections were part of thematic audits focused on reinforcing regulatory compliance and investor protection. In light of the ongoing Russia-Ukraine conflict, CySEC specifically scrutinized investment firms for compliance with sanctions, probing into their affiliations with sanctioned individuals and the management of Russian securities. The Market Surveillance and Investigations Department was notably active, finalizing 42 investigations and progressing with 48 others. A noteworthy case was…