FINRA fines Former Merrill Lynch employee $ 5,000 for reporting Crypto mining activities

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The United States regulatory authority, FINRA (Financial Industry Regulatory Authority), charged a Merrill Lynch employee $ 5,000 for cryptocurrency mining. Documents from 10 June confirm the fine.

According to the "letter of acceptance, waiver and consent" signed by the employee, Kyung Soo Kim, FINRA took action when it turned out that the activities were not in accordance with the rules related staff.

Kim, who previously had no disciplinary record, should have notified FINRA in writing when he set up a separate outfit for mining, S Corporation, in December 2017.

Merrill Lynch had raised the issue in March 2018 when Kim opposed the same reporting error.

FINRA also mentions a more vague concept of professional conduct, which it claims provides further grounds for its sanction.

"FINRA Rule 2010 requires affiliates to adhere to high standards of commercial honor and fair trade principles," the letter states.

In addition to the fine, Kim is excluded from association with a FINRA-associated company for a period of one month.

The case underlines the continued attention of US regulators for even smaller activities related to cryptocurrency, a trend that could cause major turmoil in the sector later this month.

As Cointelegraph reported, the Financial Action Task Force (FATF), an intergovernmental organization that makes recommendations on financial security to countries around the world, will publish specific cryptocurrency comments on June 21.

Cryptocurrency companies are expected to have to comply with the same reporting requirements as banks for currency transactions worth more than $ 1,000, something that experts have already criticized as a impossible company.

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Don Bradman

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