FINRA Warns About Cryptocurrency-Related Stock Scams

The stock price of Long Tea Corp. soared by more than 200% in the wake of its announcement that the company changes its name to "Long Blockchain Corp."
22 December 2017   342

Yesterday the Financial Industry Regulatory Authority (FINRA), a self-regulatory organization in the U.S., published a new warning about cryptocurrency-related stock fraud.

FINRA, an organization which provides testing and licensing for registered brokers and financial professionals, said that investors should be cautious when assessing solicitations from such firms that seek to fund cryptocurrency initiatives without the business fundamentals and transparent financial reporting to back up such claims.

The company added that today it’s easy for companies to make glorified claims about new products, services and other cryptocurrency-related connections due 'hot' cryptocurrency environment.

Long Island Iced Tea Corp. announced yesterday that it changes its name to "Long Blockchain Corp." after shifting its primary corporate focus towards the investment in blockchain technology. The stock price of Long Island soared by more than 200% in the wake of its announcement.

Long Island Iced Tea СhartsLong Island Iced Tea Charts

Recently, we have also reported that Veltyco company saw its stock price leap higher after telling investors it has started discussions with blockchain and cryptocurrency providers about potential partnerships. After the announcement Veltyco’s shares jumped 20%.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   75

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.