The U.S. Monetary Industries Regulatory Authority (FINRA) has fined and suspended a former Merrill Lynch consultant for cryptocurrency mining.

The undeclared exterior enterprise exercise can also be what misplaced Kyung Soo Kim his job.

Moonlighting As A Crypto Miner

In December 2017, Kim fashioned and integrated ‘S Corporation,’ of which he was sole shareholder and director. He opened and funded a company checking account. Then he paid one other firm to construct and function {hardware} and software program for his crypto-mining actions.

None of which appears particularly out of line… however Kim omitted to offer written discover of those actions to his boss.

When You’re A Registered Basic Securities Consultant

So what enterprise of his boss’ was it anyway?

Effectively, from March 2014 to April 2018, Kim was registered as a (GSR) Basic Securities Consultant, by way of affiliation with a Merrill Lynch subsidiary. Sadly, FINRA guidelines state:

no registered particular person could [engage in] any enterprise exercise exterior the scope of the connection together with his or her member agency, until she or he has supplied prior written discover to the member.

One can solely think about that this was resulting from a scarcity of oversight or maybe data of the principles on the a part of Kim. It doesn’t look like you’d intentionally danger shedding your job over a easy e mail giving discover of your cryptocurrency mining actions.

Though perhaps at Merrill Lynch they frown upon any type of crypto-involvement from staff?

gpu mining

Would’ve Been Fantastic If You’d Declared It

Merrill Lynch terminated Kim’s employment in March final yr, partially resulting from “fail[ure] to disclose an outside business activity.”

Over a yr later FINRA has accepted his lately submitted AWC (acceptance, waiver, and consent) letter proposing a settlement.

Principally, Kim urged that he must be suspended from affiliation with any FINRA member agency, in any capability… for a month. He additionally urged a $5000 wonderful… however solely payable on re-association with any FINRA member agency.

FINRA accepted this supply.

Wait… What?

Okay, so the man has already misplaced his job, and over what appears extra like an oversight than deliberate concealment. However actually?

Is that this a case of “you haven’t really done much wrong… but rules are rules… so how do you want us to punish you?”

We actually want to stop disobliging monetary trade guidelines being indiscriminately utilized to cryptocurrency.

What do you consider FINRA issuing a penalty for crypto mining? Share your ideas under!

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