Search Results: test State Laws, Regulatory + Enforcement Actions

New York Department of Financial Services Announces New Virtual Currency Initiatives

On June 24, 2020, New York’s Department of Financial Services (“DFS”) announced a series of steps it is taking to promote development and opportunities in the virtual currency space.  These actions would build upon New York’s “BitLicense,” a virtual currency licensing regime implemented in 2015 that establishes minimum standards for…

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FINRA (Again) Encourages Members to Report Digital Asset Activities

U.S. broker-dealer activity involving digital assets could implicate various FINRA rules in addition to federal and state securities laws and SEC rules.  As most readers likely know by now, whether this activity is of interest to or subject to the jurisdiction of U.S. securities regulators (both federal and state) largely…

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Replacing Traditional Capitalization Tables with Blockchain-Based Ledgers

Delaware amended the Delaware General Corporation Law (DGCL) and the Delaware Limited Liability Company Act (DLLCA) in 2017 and 2018, respectively, to permit corporations and limited liability companies to represent capital stock, record equity transactions, and communicate with equityholders via blockchain-based distributed ledgers. (S. 69, 149th Gen. Assembly, Del. 2017;…

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In the Matter of the Inquiry by Letitia James, Attorney General of the State of New York v. iFinex Inc., Case No. 450545/2019 (N.Y. Sup. Ct. filed Apr. 24, 2019)

On April 24, 2019, the New York Attorney General filed a petition in New York state court, alleging that Bitfinex (i.e., iFinex, Inc., BFXNA Inc., and BFXWW Inc.) and Tether (i.e., Tether Holdings Limited, Tether Operations Limited, Tether Limited, and Tether International Limited) hid a loss of more than US…

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Bittrex, Inc. License to Engage in Virtual Currency Business Activity

Bittrex, Inc. (“Bittrex”) is a US-based company that owns and operates one of the world’s largest cryptocurrency exchanges. Bittrex’s digital asset exchange platform allows approximately 1.67 million global users to trade over 200 cryptocurrencies. Bittrex offers two separate platforms, Bittrex and Bittrex International. The former is designed for use by…

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Join Us: Webinar on Crypto Regulatory + Compliance Considerations for Regulated Entities in Vermont

On Monday, August 6, 2018 Goodwin will host an hour-long webinar on crypto considerations for regulated entities in Vermont. Michael Pieciak, Commissioner of the Vermont Department of Financial Regulation, will join Goodwin Partner Bill Stern and Counsel David Solander for a discussion of relevant topics for investment advisers, broker-dealers and banking institutions….

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State and Federal Regulators Coordinate Efforts to Combat Crypto Fraud

This past week was a busy one for state securities regulators, the CFTC and the SEC as they continue their focus on rooting out fraud from the digital currency space and crypto- and blockchain-based ventures.  Noteworthy developments included (1) the North American Securities Administrators Association (NASAA) announcing a “cryptosweep” –…

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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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ICOs in 2018: Increased Regulatory Scrutiny, and Alternatives to Traditional "Utility" Token ICOs

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 unregistered securities;…

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BitConnect and the Advent of State Securities Enforcement Over ICOs

In the wake of the SEC’s clarifying guidance in Munchee[1] regarding the application of the federal securities laws to initial coin offerings (“ICOs”), there has been increased activity among both federal and state regulators as they seek to deter what they deem to be sales of unregistered securities in the…

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