• Mon, 15 Jul 2019, 06:45 PM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

FINRA fines, suspends ex-Merill Lynch advisor for crypto mining business

Fri, 14 Jun 2019, 02:28 am UTC

U.S.-based Financial Industry Regulatory Authority (FINRA) has fined and suspended a former financial advisor of Merrill Lynch for mining cryptocurrencies, a violation of the self-regulatory organization’s rules of disclosure.

According to a FINRA’s letter of acceptance, waiver, and consent published on June 10, the employee Kyung Soo Kim has served Merrill Lynch as a General Securities Representative and an Investment Company Variable Contracts Products Representative from March 2014 to April 2018. However, in December 2017, he reportedly formed a company called S Corporation to participate in crypto mining activities.

Kim, who was reportedly the sole shareholder and director of S Corporation, entered into a deal with another company to build and operate the mining hardware and software for the operations and paid the third party for its services.

He should have provided written notice to FINRA when he founded his own firm while still employed. According to Cointelegraph, Merrill Lynch had already raised the issue in March 2018 after it dismissed him for the same reason.

The crypto entrepreneur, who had no prior disciplinary records, violated FINRA’s rules 3270 and 2010. Both policies require that businesses made outside the FINRA-registered employment to be declared in writing and the FINRA-associated persons should observe “high standards of commercial honor and just and equitable principles of trade.”

The organization has penalized Kim $5,000 for the infraction and suspended him for a month from association with any FINRA member firm.

The case underlines the keen attention U.S. regulators have on any cryptocurrency-related activities. As previously reported, the Financial Action Task Force (FATF) will reportedly release a note to clarify how participant nations should manage the digital assets sector, with new rules applicable to businesses dealing with tokens and cryptocurrencies, including crypto exchanges, custodians and crypto hedge funds.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $10,774.20 (+2.09%)
  • Ethereum (ETH) $232.50 (-2.04%)
  • XRP (XRP) $0.318800 (+1.50%)
  • Litecoin (LTC) $91.98 (+1.92%)
  • Bitcoin Cash (BCH) $319.53 (+3.22%)
  • Bitcoin (BTC) $10,774.20 (+2.09%)
Jul 15, 2019 (Monday)
13:14
Crypto Technicals: XRP/USD extends weakness below 200-DMA, on track to test trendline support at 0.28
13:10
Draft of India’s cryptocurrency ban bill surfaces online
11:57
Shinhan Card patents blockchain-based system with credit card functionality
11:12
IOTA, MOBI, SAP, Deutsche Telekom and others join Convergence Alliance focused blockchain, AI, IoT
11:12
Crypto Technicals: LTC/USD pauses downside at 84 handle, bias still bearish
10:28
Crypto Technicals: BTC/USD holds support at 55-EMA (9854), break below will see further weakness
10:15
Enterprise blockchain firm R3 eyes IPO: Report
09:36
Bank of Thailand reviews blockchain applications in multiple areas
08:51
PayFast to stop accepting Bitcoin as payment method due to high fees, slow process time
07:17
U.S. lawmakers seek to prevent big tech companies from offering cryptocurrencies
06:03
Georgia VAT-exempts cryptocurrencies
05:50
Bitpoint Japan finds part of stolen cryptocurrency
05:02
South Korean companies team up to build blockchain-based identification system
Jul 12, 2019 (Friday)
11:40
Litecoin becomes official cryptocurrency of American football team Miami Dolphins
10:48
Crypto Technicals: Ripple breaks below 200-DMA, opens up further downside
10:40
Japanese cryptocurrency exchange Bitpoint loses $32M to hackers
09:40
US Election Commission to approve Congressional candidate's Ethereum token giveaway plans
09:16
HSBC reduces transaction time by 12 Days using Voltron blockchain platform
09:07
Amazon, Deloitte, Fidelity support IDEO CoLab's free blockchain accelerator program
09:05
Turkey considers developing central bank digital currency
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft