Digital Currencies Regulatory Landscape: Recent Enforcement Developments

Bitcoin, Blockchain and the Law, Blockchain, News, Regulation | September 25, 2018 By:

On September 11, 2018, US financial regulatory authorities and a New York Federal District Court were busy enforcing the federal securities laws against virtual currency companies. On that day, four important virtual currency-related enforcement decisions were delivered:

  1. The Financial Industry Regulatory Authority (FINRA) issued its first disciplinary action involving cryptocurrencies.

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Some ICOs Can Be Considered Securities Under US Law, Federal Judge Rules

Bitcoin, Blockchain and the Law, News, Regulation | September 12, 2018 By:

US securities laws cover some initial coin offerings (ICO), a federal judge has ruled, opening the door for increased government regulation of domestic ICOs.

In US V. Zaslavskiy, 17-cr-0647, U.S. District Court for the Eastern District of New York (Brooklyn), a man was charged with promoting digital currencies backed by investments in real estate and diamonds.

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Cryptocurrency US Regulatory Framework – A Draft Proposal

Bitcoin, Blockchain and the Law, Opinion, Regulation | September 6, 2018 By:

William Hinman, Director of the Division of Corporate Finance of the U.S. Securities and Exchange Commission (SEC), recently made comments foreshadowing the SEC’s inevitable treatment of cryptocurrencies, indicating that a certain degree of decentralization among a coin or token’s management and promoters could cause it to fall outside of the definition of a security. 

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Blockchain Tokens – Compliant Structures for Securities Offerings

Bitcoin, Blockchain and the Law, Opinion, Regulation | June 28, 2018 By:

Proceeds from blockchain token sales (popularly known as initial coin offerings or “ICOs”) reportedly topped $5 billion in 2017, with approximately $1 billion of such offerings originating in the United States (EY research: initial coin offerings [ICOs] [Dec. 2017]). Blockchain technology has a variety of potential applications,

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US Regulators Use Carrots and Sticks For ICOs and Crypto Investments

Bitcoin, Blockchain and the Law | June 8, 2018 By:

US state and federal regulators recently offered carrots to guide market actors toward better behavior and are using the stick of enforcement actions to discourage fraud in ICOs and other cryptocurrency-related offerings.

 The US Commodity Futures Trading Commission (CFTC) recently issued guidance for the listing of virtual currency derivative products to registered exchanges and clearinghouses in Staff Advisory No.

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ICOs Avoiding US Citizens Not Immune To Lawsuits In US

Bitcoin, Blockchain and the Law, Opinion, Regulation | June 1, 2018 By:

Last summer, the Securities and Exchange Commission (SEC) issued its 21(a) report concluding that, according to the Supreme Court’s decision in SEC v. W.J. Howey Co., the DAO token qualified as a “security” under the federal securities laws and its offering had to either be registered with the SEC or subject to an exemption from registration.

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‘Operation Crypto-Sweep’ Initiated By Securities Regulators Against ICOs – Report

Bitcoin, Blockchain and the Law, Crime, ICO News, Investing, News | May 21, 2018 By:

United States and Canadian securities regulators have launched an investigation into at least 70 companies engaging in initial coin offerings (ICO), according to a Washington Post report.

The news came from members of the North American Securities Administrators Association, who said that nore than 40 state and provincial watchdogs are participating in “Operation Crypto-Sweep.”

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