TRO Denied in Second BitConnect Lawsuit

We previously reported on the Kentucky court that issued a temporary restraining order against BitConnect.  On Wednesday, that TRO was extended to February 27. Yesterday, a new lawsuit was brought against BitConnect in federal court in Florida.  The judge in this case refused to enter a TRO freezing the defendants’ assets.  Following are the material parts of the decision: Plaintiffs argue that without the TRO, Defendants may “dissipate money generated from

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ICO, Litigation, US

Cryptocurrency Not Illegal in India

Last week, India’s Finance Minster, Arun Jaitley, made the following statement: The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system in India As Forbes reports, this was reported by many as the banning of cryptocurrency in India but that seems to have been an overstatement. 

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Cryptocurrency, India

New York Takes Action to Deter Fraud in Virtual Currency Markets

The New York State Department of Financial Services (DFS) has issued guidance reminding all virtual currency entities licensed by New York State, including those that hold a money transmitter license, that they are required to implement measures designed to effectively detect, prevent, and respond to fraud, attempted fraud, and similar wrongdoing.  In addition, DFS reminded virtual currency companies that they must be especially vigilant against efforts at market manipulation. In

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Cryptocurrency, New York, US

SEC and CFTC Chairmen Testify Before Congress

SEC Chairman Jay Clayton and CFTC Chairman Christopher Giancarlo testified today before Congress on the subject of virtual currencies.  The prepared remarks of both contained very little that they had not already said in previous public comments. (For example, Mr. Clayton repeated that the ICOS he has seen would qualify as a “security” and this need to be registered)  Each also referred to the enforcement actions that their agencies had

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CFTC, Cryptocurrency, SEC, Securities, US

Singapore Supports Cryptocurrency

In statements published today, officials in Singapore confirmed a mainly hands-off policy regarding cryptocurrencies and stated that they had no plans to ban  cryptocurrency as part of its future regulatory plans. As have many other governments, it warned about the risks of investing in cryptocurrency. At the same time, the government said it wanted to “continue to encourage experiments in the blockchain space that may involve the use of cryptocurrencies,

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Cryptocurrency, Singapore

Blockchain for Supply Chain Management: The Future of Logistics?

Over the past few decades, supply chain management has benefited immensely from technological advances that have made it easier and faster to transport cargo from one place to another. However despite these advances, supply chains continue to face challenges when it comes to tracking cargo, ensuring the integrity of cargo and holding members of the supply chain accountable for cargo, as it moves from one participant in the chain to

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Use Case

Credit Card Issuers Ban Cryptocurrency Purchases

According to a Bloomberg report, JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. said they’re halting purchases of Bitcoin and other cryptocurrencies on their credit cards.  The banks do not want the credit risk associated with the transactions.  There is also the risk that thieves will abuse cards that were purloined or based on stolen identities, turning them into crypto hoards.

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European Commission Launches EU Blockchain Observatory and Forum

On 1 February the European Commission announced the launch of a new EU Blockchain Observatory and Forum. The aims of the Observatory are to: map key existing blockchain initiatives in Europe and beyond; monitor blockchain developments, analyse trends and address emerging issues; become a knowledge hub on blockchain; promote European blockchain actors and reinforce European engagement with multiple stakeholders; be a communications channel to set out the EU’s vision and

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Blockchain and Government IDs

Government issued identification is one of the areas that garners a lot of attention in terms of the potential uses of blockchain technology outside the world of fintech.  One driver is the susceptibility of existing systems to hacking and the attendant risk of identity theft.  Another is the simple unwieldly system of so many government issued IDs — birth certificates, drivers licenses, passports, social security cards — all of which

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South Korea Does Not Intend to Shut Down Cryptocurrency Trading

South Korea is one of the world’s largest markets for cryptocurrency trading and we have previously reported here and here on steps taken by that government in the cryptocurrency space. Reuters reported today that South Korea is not going to go as far as China, which has blocked virtual coin platforms.  The country’s finance minister said that the government has no plans to shut down cryptocurrency trading.  Rather, the government

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Cryptocurrency, South Korea