- As per the data, cryptocurrency organizations in the United States have paid more than $3 Billion in penalties to the US government.
- Among these organizations BlockFi remains the victim who bore the heaviest penalty equaling $100 million during the initiation of 2022.
- Such payments of fines clearly shows that the cryptocurrency sector is being regulated by the central authorities, which is different from what the critics say regarding the sector.
CFTC And SEC Enjoying Crypto Fines
Cryptocurrency market is believed to be the only industry that is free of any regulations implicated by the centralized authorities, but the fact that the SEC is involved in the lawsuits against organizations like Ripple and Grayscale, shows another story.
As per a recent report issued by an analytics organization, Elliptic, unveiled that the government authorities have collected $3.3 Billion worth from fines imposed on the crypto organizations, since the initiation of the crowned asset Bitcoin by Satoshi Nakamoto.
US Securities and Exchange Commissions is the Big Brother of all these organizations with 70% of these penalties going to the notorious regulator. BlockFi was imposed with a $100 Million fine by the SEC as it failed to register its lending product.
CFTC is just behind the notorious regulator, having issued more than $500 Million of fines on the cryptocurrency organizations. BitMEX was charged by FinCEN in violation of the BSA act.
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How Is It Influencing The Crypto Sector?
The crypto sphere has only existed for around 13 years only now, and is still growing. For the industry, over $3 Billion of fines appears too large with respect to the time it has existed.
Tom Robinson, Elliptic founder, says that these penalties have not influenced the sector from moving forward, instead, it has given more motivation to get involved in the sector more often.
He also said that these penalties point out towards making improvements regarding regulation of the space.
There are many haters of the crypto sector who are very vocal when it comes to criticizing the space, but the enthusiasts aren’t influenced by their words (because haters gonna hate). These haters have also given the title of ‘Wild West’ to the crypto sector.
Source: https://www.thecoinrepublic.com/2022/07/03/a-lions-share-of-fine-paid-by-us-organizations-is-in-sec-pockets/