CFTC Enforcement

We have previously discussed the position taken by the U.S. SEC with respect to cryptocurrencies. But the US Commodity Futures Trading Commission (CFTC) also has a role to play. On September 17, 2015, the CFTC brought its first cryptocurrency action against an unregistered Bitcoin trading platform.  Coinflip, Inc. d/b/a Derivabit (Coinflip) and its chief executive officer Francisco Riordan were charged operating a facility for the trading or processing of commodity options

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CFTC, Litigation, US

International Watchdog Issues ICO Warning

The International Organization of Securities Commissions (IOSCO) describes itself as the leading international policy forum for securities regulators, as being recognized as the global standard setter for securities regulation and as having a membership  that regulates more than 95% of the world’s securities markets in more than 115 jurisdictions.  It issued a media release today in which it warned that ICOs are highly speculative investments in which investors are putting

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ICO

Cryptocurrency to be regulated in Australia under Anti-Money Laundering laws

Australia has introduced new laws to regulate digital currency exchange service providers in the same way as providers of traditional currency exchange services. Businesses providing digital currency exchange services (for example, services converting money into bitcoin and vice versa) will need to be registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and comply with anti-money laundering requirements, following the passage of Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill

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AML, Australia, Cryptocurrency, Exchanges

South Korea Seeks to Ban Anonymous Cryptocurrency Accounts

As previously previewed, Yohap News Agency has reported that cryptocurrency investors in South Korea will be fined for refusing to convert their virtual accounts into real-name ones.  The move comes as South Korea is scrambling to rein in the virtual currency, including preparations for a bill to ban cryptocurrency exchanges at home.  According to the authorities, cryptocurrency traders will be allowed to convert their virtual accounts into real-name ones within

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Cryptocurrency, Indonesia, South Korea, Uncategorized

FinTech Regulatory Sandbox established in Stockholm

Stockholm is a major hub for Fintech, attracting about one fifth of all European FinTech investments and can pride itself in being the home of successful FinTech companies such as Klarna and iZettle. In order to maintain its position as a European FinTech center, the Swedish Government has given the Financial Supervisory Authority an assignment to facilitate FinTech innovation. This has resulted in a FinTech Regulatory Sandbox where FinTech companies

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Sandbox, Sweden

Where Can I Buy Things With Bitcoin?

Much of the attention around Bitcoin in 2017 understandably focused on its meteoric price rise and overall volatility.  But all that attention overlooks the fact that Bitcoin was initially intended to be used as a currency for buying things.  Thus, the oft-reported story of the developer (Laszlo Hanyecz) who bought two pizzas in May 2010 for 10,000 Bitcoin ($140 million value today) in what is reported as the first bitcoin

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Bitcoin, Uncategorized

ICOs Enjoined in Malaysia and North Carolina

Today, the Securities Commission Malaysia (SC) directed CopyCash Foundation to immediately cease and desist all its proposed activities, including a purported plan to launch an ICO on January 10, 2018 in Malaysia.  This directive covers all activities as described in or incidental to CopyCash Foundation’s white paper related to the ICO, including any roadshows, seminars or promotional events related to the scheme.  The directive was issued because the SC “found

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ICO, Malaysia

SEC Temporarily Halts Trading of Blockchain Company’s Stock

UBIA is a Hong Kong company that focuses on the research and application of blockchain technology, with a focus on the IOT.  The U.S. SEC reported that it had temporarily suspended trading in UBIA’s tock through January 22, 2018. The reason for the suspension is because “of (i) questions regarding the accuracy of assertions, since at least September 2017, by UBIA in filings with the Commission regarding the company’s business

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Litigation, SEC, US

As England’s FCA Continues its Watching Brief on DLT & ICOs, is it Time For Self-Regulation?

In April 2017, England’s Financial Conduct Authority (FCA) published a Discussion Paper (“DP”) on DLT which sought views on the regulatory implications of DLT developments in financial markets and considered the potential risks and benefits of DLT applications. The FCA received 47 responses to the DP from a range of market participants and on 15 December 2017 the FCA published its Feedback Statement. No need to change rules In its

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Cryptocurrency, ICO, Smart Contracts, UK

$4 Billion Crypto-Promoter Ordered to Halt Fraudulent Sales

The Texas State Securities Board said yesterday that it entered an Emergency Cease and Desist Order to halt the multiple investment programs operated by BitConnect, an overseas company that claims a market share of $4.1 billion for its cryptocurrency coins. BitConnect’s investor solicitations promise returns of over 100 percent, the TSSB said, for BitConnect’s own proprietary cryptocurrency, called BitConnect Coins, or BCC.  The enforcement action follows BitConnect’s recent announcement that

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Cryptocurrency, Litigation, US

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