For the last 3 1/2 years, the U.S. Securities and Exchange Commission has been considering whether to approve placement of the Winklevoss Bitcoin Trust ETF (Nasdaq: COIN) on the Bats exchange. The Bats exchange is currently the largest U.S. equities market operator, and placement of COIN on the exchange would essentially…
The U.S. Commodity Futures Trading Commission (CFTC), showing continued regulatory interest in digital currency companies, issued an Order and settled charges against Hong Kong-based digital currency exchange Bitfinex. The CFTC found that Bitfinex was offering illegal off-exchange financed retail commodity transactions in bitcoin and other cryptocurrencies, and failed to register…
On June 2, 2016, the European Securities and Markets Authority (ESMA) issued a discussion paper seeking feedback from Fintech companies and financial institutions on the possible use of blockchain technology in securities markets, including the potential benefits, challenges and risks involved. The ESMA indicated that the responses will help it…
On March 29, 2016, J. Christopher Giancarlo, the Commissioner of the U.S. Commodity Futures Trading Commission, or CFTC, spoke at the Depository Trust and Clearing Corporation 2016 Blockchain Symposium. His speech encouraged regulators to treat the development of blockchain technology like they treated the internet by adopting a “do no harm”…
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…
In a span of two years, India has done a 180-degree turn on virtual currencies. In December 2013, the Reserve Bank of India issued a press release “caution[ing] users of Virtual Currencies against Risks.” The release highlighted the danger of hacking, the absence of “an authorised central agency which regulates…
Grant Fondo, blog editor and a partner in Goodwin’s Securities Litigation & White Collar Defense and Privacy & Data Security practices in Silicon Valley, recently sat down to discuss the shifting legal and regulatory landscape facing the digital currency industry. As a former federal prosecutor, Grant provides a unique perspective…
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…
Before a government agency issues regulations implementing a new law—or applies existing regulations to a new technology—it has to do some groundwork. The agency will interpret its authorizing legislation and executive orders before gathering evidence to support the exercise of its rulemaking and enforcement authorities. Some agencies are subject to…
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…