Cryptos, the godsend for regulators? – No one can ignore it. In the absence of a clear legal framework, companies in thecrypto ecosystem are easy prey for international financial regulators. Indeed, to take the example of the United States, the Securities and Exchange Commission (SEC) is at the origin of many lawsuits: Ripple (XRP), Binance, BlockFi, etc. However, taking into account the profits generated thanks to financial penalties inflicted, it is easy to understand the stubbornness of the regulators.
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Regulators and cryptos: a venal love affair
According to a report published by Elliptic, the various American monetary and financial regulators perceived $3.3 billion fines and other pecuniary sanctions imposed on crypto companies since 2009. Since the start of 2022, US regulators have perceived $179.7 million. In this amount, 100 million were paid by BlockFi as part of a settlement agreement with several US regulators, including the SEC.
In addition, the report reveals that more than 70% of all pecuniary sanctions were pronounced after action by the DRY. It also reveals that the biggest fine was pronounced against the Telegram Group for having proposed to the sale of unregistered (“GRAM”) tokens. Indeed, in 2020 the Telegram group had to pay a total fine of $1.2 billion.
Moreover, the Elliptic report reveals that the United States occupy the first place in terms of crypto-related monetary penalties. Although a few other regulators around the world are stepping up their efforts, more than 98% of the sanctions imposed have been cashed in by the American continent. Finally, this percentage should only slightly decline. Indeed, last May, the SEC announced double the size of its teams departments dedicated to the regulation of cryptos: the Crypto Assets and the Cyber Unit.
Ultimately, the SEC and other regulators have every interest in maintain the blur on the rules applicable to crypto activities and to chain the legal actions against companies in the sector. It is clear that these actions are very profitable !
It is now the entire so-called “traditional” economy that is getting ready to take advantage of the potential of Bitcoin and cryptocurrencies. The financial police also have their say. And you? Don’t wait any longer for register on the benchmark crypto exchange FTX. A lifetime reduction in your trading fees awaits you thanks to the JDC affiliate link.