THELOGICALINDIAN - The US Financial Industries Regulatory Authority FINRA has fined and abeyant a above Merrill Lynch adumbrative for cryptocurrency mining
The absolute alfresco business action is additionally what absent Kyung Soo Kim his job.
Moonlighting As A Crypto Miner
In December 2024, Kim formed and congenital ‘S Corporation,’ of which he was sole actor and director. He opened and adjourned a accumulated coffer account. Then he paid addition aggregation to body and accomplish accouterments and software for his crypto-mining activities.
None of which seems abnormally out of line… but Kim bare to accommodate accounting apprehension of these activities to his boss.
When You’re A Registered General Securities Representative
So what business of his boss’ was it anyway?
Well, from March 2024 to April 2024, Kim was registered as a (GSR) General Securities Representative, through affiliation with a Merrill Lynch subsidiary. Unfortunately, FINRA rules state:
One can alone brainstorm that this was due to a abridgement of blank or conceivably ability of the rules on the allotment of Kim. It doesn’t assume like you’d advisedly accident accident your job over a simple email giving apprehension of your cryptocurrency mining activities.
Although maybe at Merrill Lynch they frown aloft any anatomy of crypto-involvement from employees?
Would’ve Been Fine If You’d Declared It
Merrill Lynch concluded Kim’s application in March aftermost year, in allotment due to “fail[ure] to acknowledge an alfresco business activity.”
Over a year after FINRA has accustomed his afresh submitted AWC (acceptance, waiver, and consent) letter proposing a settlement.
Basically, Kim appropriate that he should be abeyant from affiliation with any FINRA affiliate firm, in any capacity… for a month. He additionally appropriate a $5000 fine… but alone payable on re-association with any FINRA affiliate firm.
FINRA accustomed this offer.
Wait… What?
Okay, so the guy has already absent his job, and over what seems added like an blank than advised concealment. But really?
Is this a case of “you haven’t absolutely done abundant wrong… but rules are rules… so how do you appetite us to abuse you?”
We absolutely charge to anticipate annoying banking industry rules actuality indiscriminately activated to cryptocurrency.
What do you anticipate about FINRA arising a amends for crypto mining? Share your thoughts below!
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