FINRA approves PEAT SATS for digital assets

Aaron Kaplan, founder and co-chief of Prometheum, said that FINRA has approved a broker-dealer subsidiary to operate an alternative trading system for institutional and individual investors to trade digital assets. He said it was a major step towards making securities mainstream.

FINRA, a US regulator, has become a member of the Prometheum Ember ATS (PEATS) and has approved the operation of that ATS. Accredited and uncertified investors for trading digital asset securities. The US Securities and Exchange Commission must also approve before initiating ATS. This could be the fourth quarter of this year.

We are pleased to announce that our subsidiary, Prometheum Ember ATS Inc., has been approved as a member of FINRA, which operates ATS for digital asset securities.With the help of @ Anchorage, All investors (certified and non-certified) will soon be accessible. https://t.co/48QAKj9j9V

— Prometheum (@PrometheumInc) August 11, 2021

Prometheum was founded in 2017 by a group of Wall Street lawyers as a blockchain-focused company to build an end-to-end ecosystem for trading digital asset securities.

Kaplan told Markets Media: We see this as a major step forward for the industry as a whole as it is a transition to allow the general public to invest in digital asset securities. “

PEATS automates the requirements of Know-Your-Customer and Anti-Money Laundering and integrates traditional blockchain technology with the on-chain management and payments offered by the first federal official digital bank, Anchorage Digital Bank.

“I think this is just the beginning, as this is the dawn of the public market infrastructure for digital assets,” Kaplan added. “This will be a game changer.”

He continued that Prometheum wants regulatory approvals for trading digital assets elsewhere that are beneficial to the industry and grow the entire market.

“I think this may be the beginning of the development of a domestic market system for digital assets in the United States,” he added.

Kaplan also predicted increased participation from traditional financial institutions in the development of new infrastructure and market centers.

“It’s a good place for Promethium and we’re very much looking forward to it,” Kaplan added.

Regulation

Prometheum was founded with a treatise that federal securities law provides the best framework for regulating digital assets.

Kaplan said: You will see more digital asset activities, processes, and participants coming under the jurisdiction of the SEC. We believe the Prometheum is in a good position as federal securities laws come into force. “

In addition, Prometheum recently hired Rosemarie Fanelli as Chief Regulatory Officer. She was previously a Senior Advisor to FINRA’s Member Oversight Department and was a member of the Digital Policy Group, whose primary purpose is to address policy issues related to digital assets.

Today, Poloniex LLC announced that it has agreed to settle fees for operating an unregistered online digital asset exchange in connection with the operation of a trading platform that facilitates the buying and selling of digital asset securities. ..

👉 https://t.co/czInVXh4KI pic.twitter.com/S4YPhq0Xnp

— SEC (@SECGov) August 9, 2021

On August 9, 2021, the SEC announced that Poloniex has agreed to pay more than $ 10 million to settle operating costs for unregistered online digital asset exchanges. According to the SEC’s order, the Poloniex trading platform, by using the Poloniex website in combination, provided a non-discretionary means for trading orders to interact and execute, as defined by securities law. Meet the criteria of “Exchange”. Order book, and Poloniex trading engine.

Enforcement News: A federal court has ordered BitMEX to pay $ 100 million for illegal operations of cryptocurrency trading platforms and violations of money laundering prevention. Click here for details: https://t.co/sjlubs0rTT

— CFTC (@CFTC) August 10, 2021

Furthermore, on August 10, 2021, CFTC issued a consent order to the five companies in charge of operating BitMEX. This will require cryptocurrency derivatives trading platforms to pay a $ 100 million civil fine for illegal operations and money laundering prevention breaches of cryptocurrency trading platforms.