Cryptocompanies in the United States have paid over $ 3 billion in fines
- Cryptocompanies have paid more than $ 3 billion in fines to US specialists since Satoshi Nakamoto sent out Bitcoin
- BlockFi was beaten by the largest fine after they paid 100 million dollars from the beginning of the year
- Payment of fines recommends that the digital currency industry is not quite as unregulated as analysts paint it to be
The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) take part in the majority of fines paid by crypto firms. Since its inception in 2009, companies have shelled out more than $ 3 billion.
A new report from Elliptic, a blockchain research firm, revealed that US money controllers have imposed $ 3.3 billion in fines on companies in the digital currency industry. In 2020, the figure remained at almost $ 2 billion, but a year and a half later it almost multiplied in size thanks to expanded administrative efforts to curb the business.
The report noted that the SEC was the largest champion with 70% of all fines to the organization. The SEC largely hit BlockFi with a $ 100 million fine for failing to register the loan object.
Telegram was hit with a penalty of 18.5 million dollars in 2020
SEC leader Gary Gensler noted that the election demonstrates the commission’s ability to work with cryptocurrencies to determine how they can comply with existing regulations. In 2020, Telegram was hit by a $ 18.5 million fine by the SEC and asked to return $ 1.2 billion to financial backers for an unregistered contribution of advanced tokens.
The Gary Gensler-run commission has indicated further efforts to manage the digital money industry by declaring the goal of doubling the size of the Crypto Assets and Cyber Unit.
The CFTC follows the SEC with fines worth $ 500 million given to crypto firms from around 2009. The Financial Crimes Enforcement Network (FinCEN) charged BitMEX $ 100 million for violating the Bank Secrecy Act (BSA) while the Office of Foreign Assets Control has begun to make some meaningful difference in the business with fines of almost $ 1 million.
The majority of the fines revolve around unregistered protection contributions, incorrect representations and against illegal tax evasion offenses. The fines often include the award of regular penalties, expulsions and compensation with Steve Chen’s 2017 settlement for extortion charges of $ 217 million.
READ ALSO: Compound’s founder is not worried about DeFi standards
The effects on the business
For an industry that is barely 13 years old, a fine of 3.3 billion dollars is quite disturbing, but experts claim that it is an indication of development. As suggested by Elliptic’s main supporter, Tom Robinson, these penalties have not repelled the crypto business either, they give financial supporters a certainty to continue.
Robinson claims that the fines are also a sign of working with guidelines for the crypto space. The company has been reprimanded for having an unclear administrative structure for leading it and has acquired the title “The Wild West”.
These fines show that crypto is not even close to being administered. Existing regulations and guidelines are now being used to limit and punish the illegal use of crypto resources, Robinson said.
The fear of fines has led companies to be vigilant in their trading inside the room. For example, Coinbase abandoned a proposed loan project after the SEC took steps to sue the trade.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge of blockchain helps him provide a unique perspective to his writing
