Financial authorities have just notched up a couple of firsts in their battle to bring compliance to crypto.
In the US, the Securities and Exchange Commission has taken its first enforcement action on cryptocurrency lending, agreeing $100mn in settlements with BlockFi over charges that it offered interest-bearing accounts without registering them as securities.
The federal regulator said the case clarified a legal grey area over popular interest-bearing accounts linked to cryptocurrency lending products, and warned that there could be more such cases to come if other lenders fail to register with the commission. BlockFi, based in New Jersey, said it would soon offer the first SEC-registered crypto interest-bearing security.
“This is the first case of its kind with respect to crypto lending platforms,” said Gary Gensler, the SEC chair. “Today’s settlement makes clear that crypto markets must comply with time-tested securities laws.”
In the UK, HM Revenue & Customs has become the first law enforcement agency to seize NFTs. The tax body said it had secured a court order to detain crypto assets worth around £5,000 and three digital artwork NFTs. The move is part of an investigation into a suspected, organized value added tax (VAT) fraud involving 250 alleged fake companies.
Nick Sharp, HMRC’s deputy director of economic crime, said: “Our first seizure of a non-fungible token serves as a warning to anyone who thinks they can use cryptoassets to hide money from HMRC. We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets.”
Continue reading: https://www.ft.com/content/93d9d837-1595-4e9c-a75f-d4672528d8ce
In the US, the Securities and Exchange Commission has taken its first enforcement action on cryptocurrency lending, agreeing $100mn in settlements with BlockFi over charges that it offered interest-bearing accounts without registering them as securities.
The federal regulator said the case clarified a legal grey area over popular interest-bearing accounts linked to cryptocurrency lending products, and warned that there could be more such cases to come if other lenders fail to register with the commission. BlockFi, based in New Jersey, said it would soon offer the first SEC-registered crypto interest-bearing security.
“This is the first case of its kind with respect to crypto lending platforms,” said Gary Gensler, the SEC chair. “Today’s settlement makes clear that crypto markets must comply with time-tested securities laws.”
In the UK, HM Revenue & Customs has become the first law enforcement agency to seize NFTs. The tax body said it had secured a court order to detain crypto assets worth around £5,000 and three digital artwork NFTs. The move is part of an investigation into a suspected, organized value added tax (VAT) fraud involving 250 alleged fake companies.
Nick Sharp, HMRC’s deputy director of economic crime, said: “Our first seizure of a non-fungible token serves as a warning to anyone who thinks they can use cryptoassets to hide money from HMRC. We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets.”
Continue reading: https://www.ft.com/content/93d9d837-1595-4e9c-a75f-d4672528d8ce
