Vermont Orders Cease and Desist to Cryptocurrency Company

In an earlier post, we reported on the North American Securities Administrators Association (NASAA)’s Operation Cryptosweep, coordinated series of enforcement actions by state regulators to crack down on fraudulent cryptocurrency-related investment schemes.  Under that operation, the Vermont Department of Financial Regulation issued, on June 4, a cease and desist order to LevelNet, of Irving, California, for violations related to the Vermont Uniform Securities Act. According to the department, LevelNet is

Read Full Article
Cryptocurrency, ICO, Litigation, US

The Blockchain Working Group in Poland

On June 4 the first meeting of the Blockchain Working Group was held at the Office of the Polish Financial Supervision Authority. This Working Group includes members of the inter-ministerial Working Group for the development of financial innovations (FinTech) and additional market entities representing the cryptocurrency and blockchain technologies. The purpose of the Group’s activities is to initiate dialogue with market representatives on DLT / blockchain technology, including cryptocurrencies and

Read Full Article
Poland

SEC Hits Another Fraudulent ICO

On May 29 the Securities and Exchange Commission (“SEC”) announced it had obtained a court order halting the ICO of BAR, a coin developed by Michael Stollery, commonly known as Michael Stollaire, and his firm Titanium Blockchain Infrastructure Services.  The SEC also obtained an order approving an emergency asset freeze and the appointment of a receiver for Titanium Blockchain. In its complaint, the SEC alleged that Stollaire lied about business

Read Full Article
ICO, Litigation, SEC, US

EU Establishes Blockchain Partnership

23 European countries have signed a Declaration on the establishment of a European Blockchain Partnership. The Partnership is intended to be a vehicle for cooperation amongst EU Member States to exchange experience and expertise in technical and regulatory fields and prepare for the launch of EU-wide blockchain applications across the Digital Single Market for the benefit of both the public and private sectors. The EU partners are keen to ensure

Read Full Article
EU

The New York BitLicense in Brief

In June 2015 New York leapt forward and introduced the BitLicense.  The BitLicense regulations prohibit companies from engaging in “virtual currency business activity” in New York, or with New York residents, without a license.  The idea is that the state will act as a gatekeeper for what is seen as high-risk business activity to ensure that companies dealing in virtual currency are structurally sound and have in place adequate protective

Read Full Article
BitLicense, Cryptocurrency, New York

State Regulators Launch ‘Operation Cryptosweep’ to Combat Fraudulent ICOs

In a press release issued on May 21, The North American Securities Administrators Association (NASAA)t announced one of the largest coordinated series of enforcement actions by state and provincial securities regulators in the United States and Canada to crack down on fraudulent ICOs, cryptocurrency-related investment products, and those behind them. NASAA members from more than 40 jurisdictions throughout North America participated in “Operation Cryptosweep,” which to date has resulted in

Read Full Article
ICO, Litigation, US

EU Parliament Adopts Resolution on Blockchain

On May 16, 2018 the European Parliament’s Committee on Research, Industry and Energy adopted a resolution on blockchain focused on making the EU a global leader in the development and adoption of blockchain. The resolution was proposed by Eva Kaili, Greek MEP, blockchain advocate and chair of the EU’s Science and Technology Options Assessment Panel which provides independent studies and information to help MEPs assess the impact of new technologies. The

Read Full Article
EU

US SEC Creates a Phony ICO

As a way of educating the public, the SEC launched a website that offers a mock ICO.  It did so in the hopes of showing how easily people can be scammed.  Howey Coins (named, tongue-in-cheek for the Howey test used by the Supreme Court to determine whether an investment is a security) claimed to have a two-month return of over 72%, as well as celebrity testimonials.  Those who clicked on

Read Full Article
ICO, SEC, US

UK Strategy on Blockchain – Baby Steps for the Cryptoassets Task Force

The UK government launched its first FinTech Sector Strategy in March 2018. One plank of its strategy was to create a Cryptoassets Task Force formed of representatives of the Treasury, the Bank of England, and the Financial Conduct Authority. The Task Force is intended to help the UK be at the forefront of harnessing the potential benefits of the new technology, while guarding against potential risks. In particular, the Task

Read Full Article
Cryptocurrency, FCA, UK

SEC Commissioner Takes Less Rigid Position on ICOs and does not Favor Sandboxes

SEC-watchers regularly quote Chairman Clayton’s statement at a February 2018 Senate hearing (“I believe every ICO I’ve seen is a security”) as evidence of the SEC’s strict view of ICOs.  During a speech yesterday at the Medici Conference, SEC Commissioner Hester Pierce took a different tact.  Asking, rhetorically, whether ICOs offerings are securities that have to be registered or qualify for an exemption, she said that the answer should be

Read Full Article
ICO, SEC, US

Categories

Location