John McAfee’s recent arrest ended in Spain a few weeks ago when cryptocurrency news was full of reports of regulations, bans, arrests and stock market violations.
News about cryptocurrency did not look like that for a while. The relief in the crypto sector may have been damaged by exit scams and cowboys, but the crypto landscape after BlockFi and post-Grayscale is a completely different animal.
Does the latest wave of crime and lawsuits mean that the sector is retreating to a brighter future? Regulators only collect? Or does it mean that no matter how mature it is, the smell of money linked to cryptocurrency will always attract attackers?
Return of prohibition, entry, arrest and enforcement
After a year of deliberation, the UK Financial Conduct Authority found that cryptocurrency derivative products were “unsuitable for private customers due to the damage they suffered.” The sale of cryptocurrency derivatives and listed securities or ETNs to retail investors in the UK or UK will be banned from the beginning of next year.
The announcement was made on Tuesday the same day that McAfee was arrested at a Spanish airport. He is currently awaiting deportation to the United States on charges of 30 years in prison.
Just a few days ago, the CFTC filed a civil lawsuit in the U.S. District Court for the Southern District of New York against BitMEX and its owners. He claimed that the unregistered trading platform violated a number of CFTC rules, including refusing to carry out anti-money laundering operations.
The Department of Justice is targeting BitMEX CEO Arthur Hayes, as well as co-founders Ben Delo and Samuel Reed.
In a statement from the regulator, CFTC Chairman Heath Tarbert fired a shotgun across the industry:
“In order for the United States to become a world leader in this area, it is necessary to eradicate illegal activities such as this. New and innovative financial products can only thrive when there is integrity in the market. We can not allow intruders to break the law. They have an edge over stock exchanges that do the right thing by following our rules. ”
RELATED: The accusations made by the senior BitMEX team are a sign for everyone
The SEC finally wins a legal battle with the Canadian messaging platform Kik. The regulator filed a lawsuit against the company in connection with the sale of $ 100 million in outstanding property in 2017, claiming that it was a violation of securities laws. On September 30, the judge agreed. Both sides must make a decision by 20 October.
RELATED: SEC Vs. Kik: SAFT Far From Safe
News of a $ 200 million eruption in the KuCoin market in late September began the news cycle at the end of the third quarter. Vulnerabilities in the stock market were not as visible this year as they were last year, when 12 serious breaches occurred and $ 300 million in digital assets were stolen.
In fact, 2019 was the worst year for security breaches, starting on January 14 with the Cryptopia hack. It was nine in 2018. This has ceased to be a prominent feature of cryptocurrency news in 2020, probably because less secure exchanges have already been disrupted in liquidation and security practices are improving on a massive scale.
Do you remember the period 2017-2018?
Cryptocurrency reports at the end of the accounting quarter tend to be based on quarterly grayscale results, bitcoin (BTC) price activity and this year decentralized financial dynamics. Apart from utilizing protocols and math signs, DeFi is growing rapidly and promises to introduce one of the most relevant uses for cryptography: working with non-knock people.
(In fact, Defi’s growth rate is partly a result of the significant level of innovation shown in envelope names and payment methods.)
This news cycle reminds us of the period from 2017 to 2018, when fake original coin offerings wreaked havoc in the markets, and cryptocurrency crimes were seen as almost a necessary concession in the name of the final redemption.
Are regulators coming in?
It has been a long time since the cryptocurrency was bombarded with news of lawsuits, embargoes and exchange violations. Perhaps we can see that police authorities and regulatory agencies have brought the ICO era to an end.
The legal drama for the sale of Kik’s Kin tokens ended on the same day that Salt Lending agreed with the US Securities and Exchange Commission to sell the $ 47 million deal in 2017.