Webull Settles With SEC Over Suspicious Activity Report Issues

Webull, a trading platform based in the United States, has agreed to pay fines to settle issues with the US Securities and Exchange Commission (SEC). Two other companies, Lightspeed Financial Services Group and Paulson Investment Company, LLC, also paid fines in the same case.

Together, the companies will pay $275,000 for failing to provide complete details in reports about suspicious activities.

Webull Faces SEC Fines Over Incomplete Suspicious Activity Reports

The SEC explained that these reports, known as Suspicious Activity Reports (SARs), help law enforcement by sharing information about transactions that might be illegal.

By law, broker-dealers must submit these reports with all the required details. From 2018 to 2022, the three companies sent reports that missed important information, according to the SEC.

Jason Burt, the Director of the SEC’s Denver Regional Office, said that SARs are important for keeping financial markets safe. He explained that incomplete reports fail to provide law enforcement with the tools they need to fight illegal activity. The SEC noted that this undermines the purpose of SARs.

Webull and Paulson have also agreed to bring in experts to check their programs designed to stop money laundering. These reviews are part of their effort to improve and follow the rules better.

The investigation was carried out by the SEC’s Denver Regional Office, working with the Financial Industry Regulatory Authority. The SEC said that leaving out details in SARs hurts efforts to stop financial crimes by making it harder for regulators and law enforcement to act quickly.

Webull Partners With Coinbase To Expand Cryptocurrency Futures Trading

Webull recently teamed up with Coinbase to offer cryptocurrency futures trading to investors in the United States. The new service will let users trade futures contracts for Bitcoin, Ethereum, and other digital currencies.

Webull shared that users need to open and fund special accounts to start trading these futures. The feature is expected to roll out in the coming months.

Webull said its partnership with Coinbase aims to help retail investors by providing new options for trading cryptocurrencies. Futures contracts for Bitcoin, nano Bitcoin, Ethereum, and nano Ether will be part of this offering.

Webull is owned by Hunan Fumi Information Technology, a company based in China. The platform was founded in 2017 and offers services like trading stocks, exchange-traded funds (ETFs), options, and futures. It has mobile and desktop versions for users.

Webull’s parent company is supported by investors like Xiaomi and Shunwei Capital. It is registered in the Cayman Islands but has its main office in St. Petersburg, Florida. Webull is planning to become a public company in 2024.