John McAfee’s recent detention in Spain was limited to weeks of limited cryptocurrency feeds brimming with reports of regulatory enforcement, bans, arrests, and exchange breaches.

Encrypted news didn’t look like this for long. The cryptocurrency sector may have previously been plagued by scams and cowboys, but the crypto scene after BlockFi and the shades of gray is a completely different animal.

Does the recent wave of crime stories and lawsuits mean the sector is in the process of being sweeping for a brighter future? Are the organizers coming now? Or does this indicate that no matter how mature they are, the smell of money in relation to the cryptocurrency will always be tempting to bad players?

Return of bans, robbery, arrests, and enforcement
After a year of deliberations, the UK Financial Conduct Authority found that cryptocurrency derivative products “are unsuitable for private clients because of the damage they cause”. It is forbidden to sell cryptocurrency derivatives and exchange-traded banknotes or ETNs to UK or UK retail investors from the beginning of next year.

The announcement came on Tuesday, the same day that McAfee was arrested at a Spanish airport. He is currently awaiting deportation to the United States, where he will be charged with 30 years in prison.

Just a few days ago, the CFTC filed a civil lawsuit in the US District Court for the Southern District of New York against BitMEX and its owners. It alleged that the unregistered trading platform violated a number of CFTC rules, including not carrying out money laundering operations.

The Department of Justice is targeting Arthur Hayes, CEO of BitMEX, as well as founders Ben Delo and Samuel Reed.

In a statement issued by the regulator, Heath Tarbert, CFTC Chair, made great interest in the industry:

“For the United States to become a world leader in this area, it is imperative to eliminate illegal activities as proposed in this case. New and innovative financial products can only thrive with market integrity. We cannot allow violators to get a head start in the stock markets. That do the right thing by following our rules. ”
On the topic: The accusations leveled against a large team at BitMEX are a signal to everyone

The Securities and Exchange Commission finally won a lawsuit against Canadian messaging platform Kik. The regulator sued the over $ 100 million company in 2017, claiming that it violated the escrow law. On September 30, the judge agreed. Both sides must make a decision by October 20.

On this topic: SEC vs Kik: SAFTs far from security

News of the $ 200 million KuCoin exchange hacked in Singapore in late September kicked off the information cycle at the end of the third quarter. The security flaws in the stock market were not as prominent this year as they were last year, when 12 major breaches occurred and nearly $ 300 million in digital assets were stolen.

In fact, 2019 was the worst year for security breaches, starting January 14th with the Cryptopia hack. There were nine in 2018. It ceased to be a prominent feature of cryptocurrency news in 2020, possibly due to the removal of less secure exchanges and better security practices in general.

Does it remind you of 2017-2018?
Final financial reports for cryptocurrencies are usually based on quarterly grayscale results, Bitcoin price activity (BTC) and decentralized financial dynamics this year. Aside from protocol exploits and meme tokens, DeFi is growing at an incredible rate and promises to unlock one of the most relevant uses of cryptocurrency: bank for non-banks.

(In fact, Defi’s growth rate is in part a result of significant innovation in protocol names and border extension technologies.)

This news cycle reminds us of the period from 2017 to 2018, when fictitious introductory currency deals wreaked havoc in markets, and cryptocurrency was considered an almost necessary acceptance in the name of potential maturity.

Are the organizers coming?
It has been a long time since news of lawsuits and bans on hackers and prey reached the cryptocurrency. We can see law enforcement and regulators end the ICO era.

The end of the legal drama surrounding Kik’s Kin token sale came on the same day Salt Lending agreed to a settlement with the Securities and Exchange Commission for her private sale for $ 47 million in 2017.

Source: CoinTelegraph