Elliptical has just released a new report highlighting the fact that cryptocurrency in general, while virtual, may well be subject to regulations. Thus, since 2014, US regulators have imposed more than $ 2.5 billion in fines, mainly due to the offer of unregistered securities.
Why is the cryptocurrency industry not the Wild West?
It is easy to believe that cryptocurrencies are inviolable for their virtual existence. However, they are not exempt from the law, so companies, for example, issuing unregistered securities, are subject to many fines. It should also be noted that the issuance of unregistered securities accounts for more than half of the fines imposed by US regulators, according to the Elliptic blockchain. it Dr. Tom Robinson underlying these claims, it also highlights the fact that fraud alone accounts for over 37% of fines worth $ 928,000.
What were the largest fines imposed?
2020 and 2021 saw two of the biggest violations of cryptocurrency laws. Thus, the SEC imposed on Telegram was fined $ 18.5 million, and the encrypted messaging app was supposed to return $ 1.2 billion for violating real estate securities laws as a result of issuance through an unregistered ICO. It is impossible not to be called one of the most important scammers in the cryptocurrency industry.
Benjamin Reynolds So he created the Ponzi scheme and escaped until he was found and charged in March 2021. He embezzled 22,000 bitcoins entrusted by his clients through his company, Control-Finance. He was then fined $ 429 million and had to return $ 143 million to his clients.
Which regulators impose the most fines?
Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are the two main regulatory bodies that control the crypto industry and intervene in cases of fraud or the issuance of unregistered securities. These two regulators imposed 67% and 25% fines, respectively, for violating cryptographic laws.
At the end of the day, it is clear that cryptocurrency-related transactions are under tight control. There are laws governing securities trading and the use of cryptocurrency does not make it untouchable. The Internet is not a lawless area, and cryptocurrencies are no exception to this rule.
Curious, passionate about words and new technologies, I consider it a matter of honor to closely follow all the news in order to share it with you. At first, like you, I did not know anything about this, now I clearly share with you the latest released technologies and a little information that can help you understand cryptocurrencies better. Multitasking, I can even educate you about the qualities of blockchains, you haven’t finished reading me yet!
DENIAL OF RESPONSIBILITY
The comments and opinions expressed in this article are those of the author only and should not be construed as investment advice. Do your own research before making any investment decisions.