On February 7, 2018, the New York State Department of Financial Services (NY DFS) issued guidance to all virtual currency businesses that maintain a “BitLicense” or that are chartered as a limited purpose trust company under New York Banking Law (collectively, VC Entities), including those that maintain a money transmitter…
On February 7, 2018, the SEC’s Office of Compliance Inspections and Examinations (OCIE) announced its 2018 Examination Priorities. In what comes as no surprise, the exam priorities include initial coin offerings (ICOs) and cryptocurrency, stating the following: “The cryptocurrency and ICO markets have grown rapidly and present a number of…
On Friday, the Office of Foreign Assets Control (OFAC) issued FAQ 551 stating that U.S. persons who deal in the prospective Venezuelan digital currency (the “Petro”) may be exposed to U.S. sanctions risk under Executive Order 13808. In December 2017, Venezuelan President Nicolas Maduro announced plans for the Government of…
On January 19, 2018, SEC Co-Enforcement Directors Stephanie Avakian and Steven Peikin and CFTC Enforcement Director James McDonald issued the following joint statement regarding virtual currency enforcement actions: “When market participants engage in fraud under the guise of offering digital instruments – whether characterized as virtual currencies, coins, tokens, or…
There is general consensus that 2017 was a banner year for cryptocurrencies. According to CNBC, initial coin offerings (ICOs) in 2017 raised approximately $3.7 billion for issuing companies. And despite some recent weakness in high-profile cryptocurrencies like bitcoin, we expect an increasing number of ICOs from an ever-expanding scope of…
On January 8, 2018, the Financial Industry Regulatory Authority (FINRA) released its 2018 Annual Regulatory and Examination Priorities Letter (Exam Priorities Letter) for its broker-dealer members. In the Exam Priorities Letter, FINRA addresses initial coin offerings (ICOs) and digital currencies, stating the following: “FINRA will closely monitor developments in this…
As published in Bloomberg BNA’s Securities Regulation & Law Report, December 18, 2017 An initial coin offering (“ICO”) does not happen on its own. Rather, there are companies and individuals that assist in successful token sales. These can include ICO consultants, marketing firms, board members, partners at private equity and…
Goodwin Partner Kelsey Lemaster spoke to CoinDesk earlier this week, discussing the potential implications of tax reform on cryptocurrency companies and investors. To read the full article, click here.
On August 30, 2017, the Israeli equivalent of the U.S. Securities and Exchange Commission, the Israeli Security Authority (“ISA”) announced it had formed a committee to study whether, and how, to apply Israeli securities laws to initial coin offerings (“ICOs”). Specifically, the ISA stated it would examine six issues related…
Pursuant to its LabCFTC initiative, the regulator issued a FinTech Primer on virtual currencies, including addressing the jurisdictional reach of the CFTC and the SEC (and potential overlap). Several questions remain regarding the already uncertain status of ICOs under the federal securities and commodities laws and regulations. WHAT HAPPENED? On…