Money Transmission

FinTech Flash: So You Want to Put a Bitcoin ATM in a Coffee Shop?

This writer received three cold emails in two weeks asking for legal help around operating a Bitcoin ATM (BTM).[1] Each groundbreaker asked: “What are the legal requirements for an operator putting a BTM in, say, a coffee shop?” Lawyers and businessmen and women work on the assumption that for every one person who…

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New York Department Of Financial Services Issues Crypto Guidance; Outlines Enhanced Reporting Requirements

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…

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State Regulation of Distributed Ledger Technology

  While the federal government has taken a variety of different positions in regulating distributed ledger technology, there are several important trends that are emerging in states’ regulation of such technology:   1) States are increasingly scrutinizing digital currencies. States are moving forward with regulating digital currencies, especially with respect…

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State Regulation Roundup Revisited

As discussed in a previous post, several states are in various stages of implementing regulations related to digital currency.  Below is an updated summary of the actions currently underway. New York Since the final version of New York’s BitLicense was announced in June 2015, surprisingly only a single BitLicense has…

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Financial Services Industry Tests the Waters of Blockchain Technology

Many of the world’s leading financial services providers have started developing their own blockchains, either to facilitate the potential for creating their own cryptocurrency, to add an additional layer of security to encrypted transactions in fiat currency, or to provide their customers services more cost-effectively than ever before. Companies that…

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State Regulation Roundup

Several states are in various stages of implementing regulations related to digital currency.  Below is a short summary of the actions currently underway. California  As discussed in a previous post, in February 2015 a California Assembly member introduced a bill (AB 1326) proposing a licensing framework for digital currencies in…

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Ready for that Exam?

A critical but sometimes overlooked topic in the virtual currency world is the Bank Secrecy Act (“BSA”) examination for registered money service businesses.  Digital currency companies that meet the definition of an MSB must register and comply with the requirements of the BSA.  This includes the implementation of an effective…

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OFAC Announces Settlement with PayPal for Apparent Sanctions Violations

On March 25, 2015, the Department of the Treasury’s Office of Foreign Assets Controls (OFAC) announced a settlement with electronic funds transfer giant PayPal, Inc. At issue were almost 500 transactions totaling approximately $44,000 in violation of various U.S. sanctions programs, including for Iran, Cuba, Sudan, proliferation of weapons of…

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Regulatory Review for 2014

Happy New Year! With the bottles popped and the confetti descended, we take a look at the some of the most important  legal and regulatory developments in the U.S. this past year. Federal Money Transmitter Law The most prolific regulatory actor in 2014 was by far the Financial Crimes Enforcement…

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