The Financial Industry Regulatory Authority (FINRA) is launching a new educational initiative focused on cryptocurrencies and blockchain technology. This program aims to bridge the knowledge gap among broker-dealer firms regarding digital assets and the underlying technology. The curriculum will encompass everything from basic concepts to the progression of blockchain, the architecture of related markets, vital considerations, and prevalent fraudulent activities linked to crypto asset involvement. The program is scheduled to debut in October on the FLEX platform. You can read more about the announcement here.
FINRA’s Approach to Addressing Risks and Building Expertise
FINRA continues its mission to enhance the stability and security of financial systems by adapting to the swiftly evolving landscape of cryptocurrencies and blockchain. The upcoming Crypto and Blockchain Education Program, developed with support from Georgetown University’s McDonough School of Business, provides both industry insights and academic rigor.
The specific learning modules will cover the following areas:
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Fundamental terms and definitions related to crypto and blockchain.
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How blockchain operates and the mechanics of on-chain transactions.
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The developmental history and advancements in blockchain technology.
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Different types of crypto assets and associated investment products.
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The structure of crypto ecosystems and the dynamics of its markets.
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Crucial considerations for FINRA member firms interacting with crypto assets and blockchain technology.
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Common types of fraud associated with crypto asset exposure.
A key aspect of this program is its delivery through FINRA’s Financial Learning Experience (FLEX) platform. FLEX uses practical exercises, realistic scenarios, and self-evaluations to ensure participants grasp the material by analyzing case studies and assessing their own understanding.
Greg Ruppert, Executive Vice President & Member Supervision, stated:
“We are thrilled to introduce this new Crypto and Blockchain Education Program, further empowering our member firms as they navigate emerging technologies and products. Through the Crypto Hub, FINRA has focused on understanding how crypto and blockchains may impact our member firms. This reflects our ongoing commitment to FINRA Forward, providing essential educational resources to help them navigate these cutting-edge innovations as we collectively build for the future.”
Conclusion
This initiative by FINRA represents a positive step towards establishing a baseline level of knowledge within member firms and promoting better quality control for internal training programs. The resources being developed are designed to focus on operational procedures and risk management at the critical intersection of products, processes, and oversight. Check back for future updates regarding crypto, blockchain, and regulatory developments.