The Financial Industry Regulatory Authority (FINRA), a self-regulatory authority (SRO) in the U.S., has issued a new warning about cryptocurrency-related stock fraud.
In a new post on its website, FINRA urged investors to do their homework when it comes to public companies that tout their activities involving blockchain or cryptocurrencies.
FINRA, an organization which provides testing and licensing for registered brokers and financial professionals, said that would-be 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."
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