logo

Not reporting crypto mining activity leads to $5000 fine by FINRA

FINRA Merill Lynch

According to documents dated for Monday this week (June 10th), a former employee of Merril Lynch was fined by the United States FINRA (United States Regulatory Authority). The document has already been confirmed as authentic and fines the individual $5,000 for not reporting his activities of mining cryptocurrencies within the jurisdiction of the USA.

FINRA was first informed about the mining activities once it checked the letter of acceptance, waiver, and consent that the employee had submitted beforehand. According to the regulator, the individual, Kyung Soo Kim, failed to comply with national standards, which led to further investigations.

In order to have avoided the fine, Kim had to notify FINRA about his activities on a separate venture for mining cryptocurrencies while being employed in Merrill Lynch during his employment in 2017. In fact, the mining activities were the cause of Kim’s dismissal from his position in 2018.

Due to the violation, Kim will also receive a ban from any FINRA-related company for a one-month period on top of his $5,000 fine. Many would say that this was quite a light punishment.

This is definitely not an SEC-scale violation of crypto regulations in the United States, but it does send a message to the local crypto community, that no matter how one may think they’re too small to be bothered with, they’d be finding themselves wrong after facing the same consequences.

It’s not clear whether FINRA will continue its hunt for violators, but similar cases may start popping out in the future.

Giorgi Mikhelidze

Giorgi Mikhelidze

Georgian-born blockchain enthusiast Giorgi leverages his software development background for on point market commentary and analysis. A brief stint with Finance Makers and he's now covering crypto news for high authority websites with the tip learned from past experience, "Whenever you see people talking about the weakness of your idea, don't see it as criticism."

Related News

Hot Stories

Polkadot price analysis: DOT resurges to $9.20, consolidation below $10 continues
Bitcoin, Ethereum, Quant, and EOS Daily Price Analyses – 14 August Roundup
Cardano price analysis: ADA sets up bullish move after rising above $0.55 barrier
Dogecoin price analysis: DOGE spikes 15 percent, further upside swiftly rejected
How to Stake Cosmos 2022 (Complete Guide)

Follow Us

Industry News

BlueBenx halts withdrawals after $32 million hack
Vauld fights back after ED freezes its $46M assets
UnionBank launches in-app crypto exchange
Huobi`s crypto mogul seeks to sell his stake for $3B
Are gaming NFTs dead?