FINRA Fines Individual for Unreported Crypto Mining

written by

Support free journalists: > send a tip

A former employee of Merril Lynch was fined USD 5,000 by the Financial Industry Regulatory Authority (FINRA) when it was observed that the employee’s crypto mining activities did not conform with associated rules.

Kyung Soo Kim, the fined employee signed a letter of acceptance, waiver and consent. This is in accordance with the documents signed on 10 June:

“FINRA Rule 2010 requires associated persons to observe high standards of commercial honor and just and equitable principles of trade.”

Kim was fined as he failed to inform FINRA about his setting up of separate ventures for mining while he was still employed in December 2017. Along with the fine, Kim will also be barred from associating with any FINRA firms for the duration of one month.

FINRA’s slightly ambiguous rule on professional conduct provided it with further grounds to penalize Kim.

This move clearly sends the message that the local crypto miners need to be cautious. What may seem insignificant, can get the attention of the US regulators, which would force them to face similar (if not worse) consequences. However, there is still ambiguity as to whether or not FINRA will continue its pursuit of catching the perpetrators.

As reported earlier, the vagueness of crypto terminology standards hinders a global regulatory response for most jurisdictions. The Securities and Exchange Commission (SEC) in collaboration with FINRA is planning to hold National Compliance Outreach Program for Broker-Dealers on June 27, 2019. The program is designed to analyze the current regulatory risks in the market and promote an effective compliance structure for the protection of investors from the same.

 

BitcoinNews is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews: https://t.me/bconews

Image Courtesy: Pixabay

Help spread this article :)

BitcoinNews.com is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of BitcoinNews.com

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by BitcoinNews.com to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of BitcoinNews.com 

   Advertisement

Latest on Bitcoin News

   Advertisement