cryptojournalist
FINRA has issued an important reminder that any financial projects taking place in the metaverse must adhere to the same regulatory standards as traditional business operations. The organization emphasized that its rules are designed to be “technology neutral,” which means that using emerging technologies, like the metaverse, does not exempt firms from their legal obligations.
In its report, FINRA stated that all activities conducted within the metaverse are subject to established financial laws and regulations. This includes compliance with securities laws, which govern how financial transactions should be conducted. FINRA wants member firms to understand that just because they are exploring innovative platforms and tools in the metaverse, they must still operate within the regulatory framework that governs the financial services industry.
Footnote: Technology neutral means that regulations apply equally across all technologies, ensuring fairness and compliance. FINRA (Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokerage firms and exchange markets to maintain market integrity and protect investors.
