Regulators To Take Actions Against Crypto Law Breakers; NYDFS Chief
In a recent crypto report, Superintendent Adriene Harris voiced out that the New York State Department of Financial Services (NYSDFS) is not scared of filing legal actions against any crypto-related firms that break regulatory instructions shortly after the agency brought legal actions against Robinhood and Coinbase exchange. Meanwhile, other government financial regulatory bodies reportedly prefer a bespoke and global strategy towards regulating crypto.
According to the report, Superintendent Harris pointed out during a recent Financial Times event that the NYDFS is proactive and ready to launch legal action, at any time, against crypto firms or other financial institutions that breach the financial regulations of the country. Also, Harris reportedly highlighted some significant scenery where the commission had filed legal actions against major financial firms in the past.
Regulatory Agencies Take Legal Actions Against Crypto Firms
Harris recalled that In January, the New York Department of Financial Services sued Coinbase exchange for allowing users to register their accounts without enforcing proper background checks. Consequently, the court mandated the giant crypto firm to pay a fine of $50 million to the plaintiff. Similarly, Harris pointed out that Robinhood (HOOD) was accused of breaching cybersecurity and anti-money laundering laws by NYDFS last year. Robinhood reportedly paid $30 million as a fine for its alleged offense. While continuing his speech, Superintendent Harris said after he assumed office, he has been working for long hours to reset the tone of financial firms’ compliance with regulations. In other words, he said as a regulated firm, there are expectations and rules to be followed, and if any of them are breached, the commission is by default mandated to bring enforcement actions against the violator.
Meanwhile, another report showed that the United States Department of Justice recently sued the biggest crypto exchange globally, Binance exchange, with charges of offering digital assets services to US citizens without the right authorization as well as allowing investors in sanctioned regions to access financial services through its platform.
Superintendent Harris Comments On Crypto Regulations
Commenting on the event, Harris remarked that the NYDFS had been deliberately focusing on the illegal finance fragment of crypto. The Superintendent continued that the illicit component of the blockchain and crypto innovation seems to be limitless, adding that it is currently gaining more attention due to the ongoing legal actions filed against some of the largest crypto exchanges such as Binance and Coinbase by the US Department of Justice (DOJ), Securities and Exchange Commission (SEC), as well as the Commodity Futures Trading Commission (CFTC).
Furthermore, the report showed that global regulators have been striving to draft a global regulatory framework to regulate and control the conduct of services and products related to cryptocurrency. Meanwhile, the European government recently implemented MiCA (Markets in Crypto Assets) regulation which is a broad regulatory framework that can be enforced across the 27 member nations of the EU.
EU Parliamentarians Call For Standard Crypto Regulations
During a panel meeting, a European Commission adviser, Peter Kersten, reportedly stated that crypto does not have any illegitimate composition, claiming it is a financial technology. He explained that the financial tool does not work based on a centralized entity but instead operates a decentralized ledger open to all to prevent secrecy and illegitimate operations. However, he admitted that a lot of illegal activities can be executed with the aid of the technology which the EU regulators are working hard to combat and reduce.
In addition, Lisa Cameron, a United Kingdom Parliamentary, requested during the same panel that clear regulatory standards for global regulation of the crypto industry should be created. Cameron advocated for a high level of interoperability and other jurisdictions that can help control the growth and adoption of cryptocurrency across the world. Meanwhile, the International Organization of Securities Commissions (IOSC), the Financial Stability Board (FSB), and other financial standards setters have reportedly issued international standard regulations for countries to implement.
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