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…
The 2018 iteration of Yahoo! Finance’s All Markets Summit, taking place on Tuesday, February 7, 2018, will focus solely on cryptocurrency. From Bitcoin and blockchain to ICOs, in conjunction with CoinDesk, Yahoo! Finance will lead a series of conversations with CEOs, engineers, policy makers and legal experts on the growing…
As originally published by Brave New Coin, January 19, 2018. As we transition from 2017 into 2018, there has been an increase in SEC and state regulator activity in the area of Initial Coin Offerings (“ICOs”), as the agencies seek to determine (i) whether certain ICOs constitute a sale of…
On the same day that a meteorological blizzard slammed the Eastern Seaboard, U.S. financial regulators unleashed their own flurry of statements and warnings surrounding initial coin offerings (ICOs) and cryptocurrencies. Bundle up, because if the first week of the year is a prelude of things to come, then 2018 is…
Major derivatives market operators CBOE Holdings and CME Group have jumped into the digital currency fray within the last two weeks by launching cash-settled bitcoin futures contracts (1). The exchanges recently cleared de facto regulatory hurdles when the Commodity Futures Trading Commission (CFTC) announced the completion of the exchanges’ “self-certification”…
The Securities and Exchange Commission (SEC) recently issued two warnings about investments sold on the basis of celebrity endorsements, including one relating to initial coin offerings (ICOs), and followed up with enforcement actions against unregistered ICOs. Investors can be misled by biased promotions. Receipt of cash or other consideration in…
On December 11, 2017, the U.S. Securities and Exchange Commission (SEC) issued a cease-and-desist order to Munchee Inc. (Munchee), a company that was in the process of a $15 million initial coin offering (ICO), for selling unlicensed securities. The SEC found that the ICO targeted investors, with the expectation of…
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…