Participating in IPOs on Bitso comes with a few requirements you need to meet. They're part of US financial market rules and are designed to protect you as a participant. Here's what each one means.

Who can participate in IPOs on Bitso?

Any Bitso user with an active account in good standing can participate in IPOs, as long as they aren't a restricted person under FINRA rules.

The first time you participate, we'll ask you to confirm three things:

• That you're not a person restricted by FINRA. FINRA rules 5130 and 5131 prohibit certain people linked to the financial industry from participating in IPOs. This includes investment bank employees, brokers, and their immediate family members, among others. If you have no ties to the financial industry, you're very likely not a restricted person.
• That you understand the flipping policy. Flipping means selling shares obtained in an IPO within 30 days of the stock's market debut. This practice is restricted and can affect your access to future IPOs on Bitso.
• That you understand the risks of participating in IPOs. That it's your responsibility to assess whether they're suitable for your goals, time horizon, and risk tolerance.

What happens if I sell my shares soon after?

By participating in an IPO on Bitso, you agree to the flipping policy. Flipping means selling shares obtained in an IPO within 30 days of the stock's market debut.

If you sell within that period, it can affect your access to future IPOs on Bitso. We recommend keeping this in mind before submitting your request.

What happens if I don't meet these requirements?

If you're a restricted person under FINRA rules, you won't be able to participate in IPOs on Bitso. This restriction isn't a decision made by Bitso, but a regulatory requirement of the US financial market.

If you're unsure whether you qualify as a restricted person, we recommend checking FINRA rules 5130 and 5131 directly.