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July 2018

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On 18 July 2018 the European Parliament Committee on Internal Trade (“CIT”) published a draft report setting out a motion for a European Parliament Resolution regarding how blockchain could be harnessed to enhance international trade and supply chain management. The report focuses on the use of permissioned (private) blockchain solutions. Blockchain  Benefits   The CIT believes that blockchain provides enormous opportunities for reducing barriers within global trade. In particular, the potential benefits of permissioned blockchain…

Last year, the SEC rejected an application by Cameron and Tyler Winklevoss for what would have been the first-ever Bitcoin ETF.  The group made some changes and resubmitted their application in June.  In a release yesterday, the SEC rejected the revised request as well. The exchange that sought to list the Winklevoss’s ETF had argued that Bitcoin trading is too decentralized across the globe for fraudsters to manipulate the price.  The SEC found that the…

On 3 July 2018, the European Banking Authority (EBA) published a report outlining the prudential risks and opportunities arising from FinTech as part of its 2018 FinTech Roadmap. The report includes useful guidance on the use of distributed ledger technology (DLT) for trade finance and CDD (although the EBA is keen to note that the report should not be considered to provide an exhaustive list of possible prudential risks and opportunities that may arise.) Trade…

On July 16 the Financial Stability Board (“FSB”) published a report establishing a framework to monitor-crypto-asset markets.  The report sets out the metrics that the FSB will use to monitor crypto-asset markets in order to identify any emerging financial stability concerns in a timely manner. The FSB is an international body made up of national financial authorities, international financial institutions, and international standard-setting bodies, and monitors and makes recommendations about the global financial system. The…

The Australian Securities and Investment Commission (“ASIC”) has released further guidance on initial coin offerings (“ICOs”) and cryptocurrency compliance through its updated Information Sheet 225 (“Info 225”). ICOs are a new form of internet based capital-raising using cryptocurrencies to purchase digital coins or tokens known as ‘crypto-assets’. With regulation struggling to keep pace with this growing area of the financial services market, Info 225 gives greater clarity on the legal status of ICOs and crypto-assets in Australia. Info…

As reported, the Philippine central bank (Bangko Sentral ng Philipinas) (“BSP”) has approved applications filed by two cryptocurrency exchange platforms to facilitate the conversion of Philippine pesos (“Pesos”) into cryptocurrencies. There are now five BSP-approved cryptocurrency exchanges operating in the Philippines. This development is undoubtedly a positive for cryptocurrency adoption in the Philippines and total Peso-to-crypto conversion volume is substantial, with around US$38 million worth of Pesos being exchanged into crypto per month in late…

On July 2, the U.S. Securities and Exchange Commission charged two men with the illegal sale of securities related to UBI Blockchain Internet, Ltd. (“UBIB”).  The SEC alleges that T.J. Jesky and Mark F. DeStefano made approximately USD 1.4 million by selling shares in UBIB over a 10-day period in December 2017 and January 2018.  The sales stopped when the SEC temporarily suspended trading in UBIB stock earlier this year due to concerns about the…

A joint statement (Statement) on cryptocurrencies has been released by the National Bank of Cambodia, the Securities Exchange Commission of Cambodia and the General-Commissariat of National Police of Cambodia. The Statement reinforces that Cambodian authorities consider activities relating to cryptocurrencies (trading, settling and other activities) that are conducted without an appropriate license to be illegal. Interestingly the Statement names certain cryptocurrencies (including KH Coin, Suncoin, K Coin, One-Coin and Forex coin) that have been observed…