Crypto Firms Exit UK Before FCA Deadline for Registration

The UK’s temporary registration regime, introduced in Dec. 2020, was supposed to enable crypto firms to continue their trading operations until they received final approval from the Financial Conduct Authority (FCA). But successive extensions to the regime and delays to the final approval deadline have forced them to seek regulatory approval outside the UK. The current deadline for approval is March 31, 2022. According to … Continue reading Crypto Firms Exit UK Before FCA Deadline for Registration

Does DeFi Need Regulation?

Is decentralized finance (DeFi) a revolutionary reinvention of modern finance that should remain outside the bounds of regulation? Or is it jargon – algorithmic authority window-dressed as liberty and accompanied by the same problems as traditional finance – that should be hemmed in by rules? A new paper by Hilary J. Allen, Professor at the American University Washington College of Law, argues for the latter … Continue reading Does DeFi Need Regulation?

Crypto Makes Moves in Washington

The cryptocurrency industry is going to Washington. According to an article in the Wall Street Journal, crypto companies are spending big bucks to hire former regulators and government officials to increase their influence on policymaking. The revolving door between government agencies and private enterprise, at least in the case of cryptocurrencies, has gathered speed in recent times after a bull market in prices and new … Continue reading Crypto Makes Moves in Washington

Does Biden’s Executive Order On Cryptoassets Make A Difference?

President Joe Biden today signed an executive order to develop a framework and formulate a ‘whole-of-government approach’ to cryptocurrencies. The order tasks government agencies with coordinating amongst themselves to focus on six key areas of research: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation. While individual agencies within the U.S … Continue reading Does Biden’s Executive Order On Cryptoassets Make A Difference?

Can SEC Commissioner Hester Peirce’s Proposal Revive the ICO Market?

In the annals of crypto history, initial coin offerings (ICOs) were the latest innovation until they weren’t. After briefly eclipsing traditional forms of venture financing, ICOs have largely been relegated to the sidelines of the fundraising ecosystem after an SEC crackdown. A glance at the moribund market for coin offerings during the first quarter of 2019 revealed distressing news. Coin offerings, which had raised $6.9 … Continue reading Can SEC Commissioner Hester Peirce’s Proposal Revive the ICO Market?

EU Needs a Common Approach to Crypto-Assets: EU Financial Commissioner

The European Union may soon develop a regulatory framework for cryptocurrencies. At a confirmation hearing for his reappointment, Valdis Dombrovkis, the European Union’s financial commissioner, said that he intended to propose new legislation for cryptocurrencies. “Europe needs a common approach on crypto-assets such as Libra,” he said. Dombrovkis, who is the former Prime Minister of Latvia, made those remarks while discussing the use of financial … Continue reading EU Needs a Common Approach to Crypto-Assets: EU Financial Commissioner

Class Action Lawsuit Filed Against Bitfinex and Tether for Fueling “Largest Bubble in Human History”

Bitfinex and Tether, already embroiled in a case with the New York Attorney General, were hit by a class-action lawsuit this morning. The suit was filed by Roche Freedman LLP, a law firm that successfully won a case against supposed Bitcoin creator Craig Wright recently. Their current lawsuit alleges that Bitfinex and Tether concocted a scheme that was “part-fraud, part-pump-and-dump, and part-money laundering” to “defraud … Continue reading Class Action Lawsuit Filed Against Bitfinex and Tether for Fueling “Largest Bubble in Human History”

SEC Settles with Nebulous over its 2014 Offering

The SEC has settled with another coin for an unregistered securities offering. Nebulous, a Boston-based company behind the Sia network – a decentralized cloud storage company, has agreed to pay $225,000 as penalty for conducting an offering worth $120,000 for SiaNotes, a token it intended to develop for purchase and sale of storage space on its network in 2014. The SEC’s order points out several … Continue reading SEC Settles with Nebulous over its 2014 Offering

Federal Court Orders Longfin, Whose Stock Price Soared During Crypto Mania, to Pay $6.8 Million Penalty for Fraudulent Offering

Longfin Corp., a company that generated news cycles at the height of crypto mania in 2017, has been ordered by a federal court judge to pay the SEC a $6.8 million penalty for a fraudulent public offering of its tokens and for conducting sham commodities transactions. Longfin was previously in the news for its acquisition of a crypto company Ziddu.com, an action that resulted in … Continue reading Federal Court Orders Longfin, Whose Stock Price Soared During Crypto Mania, to Pay $6.8 Million Penalty for Fraudulent Offering

The World’s Biggest ICO Settles with the SEC for Securities Violation

Block.One, which conducted the world’s biggest initial coin offering (ICO) last year, has agreed to settle with the Securities Exchange Commission (SEC) for an unregistered sale of securities. As part of the settlement, Block.One will pay a one-time penalty of $24 million. The federal agency noted that Block.One conducted its offering after publication of the DAO Report of Investigation, a 2017 report that examined the … Continue reading The World’s Biggest ICO Settles with the SEC for Securities Violation

Coinbase and Others Want to Rate Cryptoassets But Their System has Several Problems

To reassure regulators about the legal status of assets listed on their platforms, leading crypto firms and exchanges within the United States have formed a council to assign ratings for tokens. The Crypto Ratings Council counts top-tier crypto exchanges, such as Coinbase and Kraken, and firms like Grayscale Investment and Cumberland Mining as members. It rates tokens based on previous court decisions and SEC statements … Continue reading Coinbase and Others Want to Rate Cryptoassets But Their System has Several Problems

Harbor Subsidiary is Awarded Broker-Dealer License

A subsidiary of securities platform Harbor has been granted a broker-dealer license by FINRA. According to online publication Coindesk, awarding of the broker dealer license to Harbor Square Investments may clear the way for other broker-dealers who deal exclusively in cryptoassets to gain approval from the agency. A broker-dealer license allows trading platforms to perform several activities, such as selling and purchasing securities for customers, … Continue reading Harbor Subsidiary is Awarded Broker-Dealer License

A Time of Reckoning for Bitcoin ETFs

Approximately twenty months after it first listed a multitude of concerns as reasons for its refusal of a Bitcoin ETF, the SEC has come to the same moment of reckoning. The next couple of weeks are critical for Bitcoin ETFs as the agency takes a decision on applications filed by New York-based Wilshire Phoenix and San Francisco’s Bitwise Asset Management. The prospects of approval for … Continue reading A Time of Reckoning for Bitcoin ETFs

Libra, Security, Jay Clayton

Libra Sounds Like a Security: SEC Chairman Jay Clayton

In a Congressional testimony to the House Financial Services Committee yesterday, SEC chairman Jay Clayton indicated that Facebook’s cryptocurrency Libra might be a security token. “If what you are doing is raising capital for a project with the idea that you are going to give a return as a result of investing in that (token), then Libra sounds like a security,” he said. Clayton prefaced … Continue reading Libra Sounds Like a Security: SEC Chairman Jay Clayton

New York Crypto Business Files Lawsuit Calling for Abolition of BitLicense

New York’s BitLicense regulation has already drawn the ire of crypto advocacy groups and startups since it was introduced in 2014. Crypto businesses bolted from the state, blaming the law’s onerous requirements for their departure. Now a small business entrepreneur is calling for an abolition for an abolition of the license in a lawsuit filed with the New York Department of Financial Services (NYDFS). Filed … Continue reading New York Crypto Business Files Lawsuit Calling for Abolition of BitLicense

VanEck Withdraws Bitcoin ETF Application After Launching Fund for Institutional Investors

Investment firm VanEck, which had applied for a Bitcoin ETF earlier this year along with SolidX, withdrew its application on Sep. 13th, according to a filing posted on the SEC website this evening. The federal agency was due to issue a final decision on their application by October 18th. Today’s application withdrawal leaves just two more players in the Bitcoin ETF fray: Wilshire Phoenix and … Continue reading VanEck Withdraws Bitcoin ETF Application After Launching Fund for Institutional Investors

Facebook and JP Morgan Team Meets With BIS; Libra Chief Says Coin Will Not Threaten “Monetary Sovereignty”.

Representatives from Libra, Facebook’s proposed cryptocurrency and blockchain, and investment bank JP Morgan met officials from the Bank of International Settlements (BIS) in Switzerland today to discuss policy and regulatory issues relating to stablecoins. The meeting was part of an effort by the bank to understand stablecoins, cryptocurrencies whose price is pegged to that of fiat currencies or basket of goods. Numbers for such coins … Continue reading Facebook and JP Morgan Team Meets With BIS; Libra Chief Says Coin Will Not Threaten “Monetary Sovereignty”.

We Cannot Authorize Development of Libra on European Soil: French Finance Minister

France’s finance minister, one of the earliest critics of Facebook’s Libra, fired another warning shot at the cryptocurrency today. “All these concerns around Libra are serious. So I want to say this with a lot of clarity: In these conditions, we cannot authorize the development of Libra on European soil,” France’s Finance Minister Bruno Le Maire said at the OECD conference in Paris. The concerns … Continue reading We Cannot Authorize Development of Libra on European Soil: French Finance Minister

Facebook Divulges Information About Libra Reserves Composition

Responding to concerns from Sen. Mark Warner (D-VA), Facebook stated yesterday that the reserves backing Libra, its cryptocurrency and blockchain, would include the U.S. dollar, Euro, Japanese Yen, Singapore Dollar, and the British Pound. Senator Warner had asked Facebook to not include the Chinese Yuan in its reserves due to concerns about the currency’s manipulation by the government to gain trade benefits. In recent times, … Continue reading Facebook Divulges Information About Libra Reserves Composition

SEC Chair Jay Clayton Says Market Closer to First Bitcoin ETF

Is a long-awaited Bitcoin ETF on the horizon? Based on a CNBC interview of SEC Chairman Jay Clayton, that seems to be the case. “The short answer is yes,” he said, responding to a question about whether the markets were closer to seeing the first Bitcoin ETF. He followed up that answer by restating the original concerns. “How do we know that we can custody … Continue reading SEC Chair Jay Clayton Says Market Closer to First Bitcoin ETF

Andreessen Horowitz Courts Regulators For Crypto

Notable venture capital company Andreessen Horowitz has bankrolled several blockbuster startups over the years. But the firm’s latest bet on cryptocurrencies is going awry due to regulatory bottlenecks. Now it is taking matters into its own hands. According to a recent WSJ report, the Menlo Park-based firm hosted a Crypto-Regulatory Summit in San Francisco in May earlier this year. The summit, which boasted top policymakers … Continue reading Andreessen Horowitz Courts Regulators For Crypto