Fifth Lawsuit Filed Against Ripple’s XRP by Investors

Even though it is the third largest cryptocurrency by market capitalization, Ripple’s XRP token has faced criticism from within and outside the crypto community. Observers have also construed the SEC’s silence on XRP’s status as a negative, meaning that classification as a security could crash its high valuation by saddling it with extra costs and disclosures for compliance. Another one was filed this month. The … Continue reading Fifth Lawsuit Filed Against Ripple’s XRP by Investors

SEC Delays Decision On Bitcoin ETFs, Again

Those waiting for the first Bitcoin ETFs might have to hold their breath a little longer. The Securities and Exchange Commission (SEC) postponed decisions on three filings for Bitcoin ETFs yesterday. It published documents stating that it will take a final decision on two high-profile ETF proposals in mid-October. Those decisions pertain to the Bitwise and VanEck Bitcoin ETF filings submitted in February and March … Continue reading SEC Delays Decision On Bitcoin ETFs, Again

Fifteen Governments Are Working Together To Share Crypto Transaction Data

About 15 governments are planning to  work together to share crypto transaction and user data for prevention of money laundering for illicit and terror activities. The new system will allow them to collect personal information and share it amongst themselves. The Financial Action Task Force (FATF), an international organization that counts the biggest economies on earth among its members, will be responsible for designing and … Continue reading Fifteen Governments Are Working Together To Share Crypto Transaction Data

Rhode Island Unveils Crypto Legislation

Rhode Island has become the latest state to create legislation specifically targeted at cryptocurrencies. According to a new law, the state will begin regulating businesses that accept fees to conduct crypto transmission or have control of crypto coins, January 2020 onwards.   As part of the new law, such businesses will need to comply with anti-money practices and anti-fraud practices. They are also required to … Continue reading Rhode Island Unveils Crypto Legislation

SEC “Badly Mischaracterizes” Case Against Kin: Kik

Messaging app Kik Interactive has filed a response to the SEC’s complaint against it last month. In its complaint, the federal agency had alleged Kik’s offering of its token called Kin was a “hail mary” unregistered security offering intended to shore up dwindling revenues and a decline in user numbers on its app. The complaint quoted from internal emails and confidential conversations and painted a … Continue reading SEC “Badly Mischaracterizes” Case Against Kin: Kik

International Regulators Put Pressure On Facebook To Reveal More About Libra Project

The pressure on Facebook’s Libra project is unremitting. Privacy and data protection regulators from five jurisdictions released a statement this morning asking for more information about the project.  The Australian Information Commission and data regulation bodies in the UK, Canada, US, and the EU are leading this effort. “This is an important step in a global regulatory movement that is holding online companies to account … Continue reading International Regulators Put Pressure On Facebook To Reveal More About Libra Project

UK’s Regulatory Watchdog Issues Clarity On Cryptoasset Definitions

The UK is the latest country to issue clarity on crypto regulation. The Financial Conduct Authority (FCA), the country’s financial watchdog, released a policy statement yesterday in response to a consultation paper published in January this year. The paper prompted a response from 92 major financial entities, including crypto exchanges, banks, and trade associations. The regulator says that most responses were in support of the … Continue reading UK’s Regulatory Watchdog Issues Clarity On Cryptoasset Definitions

Ripple Sends Letter Asking for Regulatory Clarity Regarding Cryptocurrencies To US Congress

Ripple has asked the US Congress for greater regulatory clarity about cryptocurrencies in a letter published Sunday on blogging platform Medium. In their letter, the company claims that without a clear regulatory framework, there is a risk to the innovation, jobs, and tax revenue that blockchain technology can create overseas. What Ripple Wants Ripple’s letter is essentially a plea for a partnership with regulators. While … Continue reading Ripple Sends Letter Asking for Regulatory Clarity Regarding Cryptocurrencies To US Congress

IRS Sends Out Letters to Cryptocurrency Holders

Holders of cryptocurrencies have begun receiving letters from the IRS about possible tax violations, according to a WSJ report. The agency has sent the letters out to 10,000 people, the report states. “Taxpayers should take these letters very seriously. The IRS is expanding efforts involving virtual currency, including increased use of data analytics,” IRS Commissioner Chuck Rettig told the Journal. Unlike cash, it is possible … Continue reading IRS Sends Out Letters to Cryptocurrency Holders

SEC Issues Second No-Action Letter This Year To Pocketful of Quarters

The SEC has issued its second non-action letter for ICO tokens to gaming startup Pocketful of Quarters (PoQ). The venture, started by eleven-year-old sixth grader George B. Weiksner, intends to use utility tokens called Quarters. The tokens are based on the ERC-20 protocol, the most popular smart contract protocol for developing tokens on Ethereum. They will be used as in-game currencies to trade goods and … Continue reading SEC Issues Second No-Action Letter This Year To Pocketful of Quarters

Facebook Steps Up Libra Lobbying Even As It Faces Uphill Battles On Other Fronts

Facebook is stepping up its lobbying game for Libra in the nation’s capital. According to a report in Politico, the social media behemoth has hired two pro Washington lobbyists and a law firm to convince lawmakers about its cryptocurrency and blockchain. The company has hired Sternhell Group and Cypress Group to lobby lawmakers. The former counts the likes of Citigroup Inc. and investment firm PIMCO … Continue reading Facebook Steps Up Libra Lobbying Even As It Faces Uphill Battles On Other Fronts

Treasury Secretary Steven Mnuchin Joins Critics Chorus for Facebook’s Libra

Facebook’s Libra coin has dominated cryptocurrency headlines since its announcement last month. Today was no exception. This afternoon Treasury Secretary Steven Mnuchin said it was a “national security issue” because it could be misused by money launderers and terrorist financiers. “Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cybercrime, tax evasion, extortion, ransomware, illicit drugs and human … Continue reading Treasury Secretary Steven Mnuchin Joins Critics Chorus for Facebook’s Libra

UK Plans To Make All Crypto Businesses AML Compliant By Jan 2020

The UK Government plans to make the Financial Conduct Authority (FCA) responsible for enforcing regulatory practices, such as anti-money laundering (AML). It made this announcement in an “Economic Crime Plan” released last week. The plan is intended to tackle “fraud, money laundering, bribery and corruption.” According to the plan, all relevant cryptoasset businesses will be brought under AML/CTF regulation by January of next year. The … Continue reading UK Plans To Make All Crypto Businesses AML Compliant By Jan 2020

Facebook’s Partners in Libra Have Not Committed To It: NYT

Questions and controversies continue to dog Facebook’s entry into blockchain and cryptocurrencies. According to a report in the New York Times, none of the 27 partners in Libra, the company’s crypto venture, have signed binding agreements regarding their participation. Instead they have opted for nonbinding agreements that do not oblige them to promote or use Libra. An Impressive List With Membership Benefits   The list … Continue reading Facebook’s Partners in Libra Have Not Committed To It: NYT

Will Libra Allow Facebook to Print Money For Its Business?

Facebook has window-dressed its Libra initiative as a noble mission to help the world’s unbanked population. But it could have a more-than-noble impact on its bottom line. While details about the project have not been released, analysts and commentators have noted that Libra gives Facebook the license to print “even more money” to boost its revenues and make the founding members of the Libra Association, … Continue reading Will Libra Allow Facebook to Print Money For Its Business?

How are Regulators Reacting to Facebook’s Libra? A Recap

Facebook’s announcement of Libra, its blockchain and cryptocurrency to bank the unbanked, has generated a storm of opinions and responses. Perhaps, the most important among those are the ones that pertain to regulation. Unlike social media and technology, the financial services industry is a heavily-regulated one with detailed rules that govern each transaction. Facebook’s expansive plans for its cryptocurrency could fall apart, if regulators do … Continue reading How are Regulators Reacting to Facebook’s Libra? A Recap

New FATF Rule Recommends Cryptocurrency Exchanges Collect Customer Information

Call it the mainstreaming of cryptocurrencies. The Financial Action Task Force (FATF), an inter-governmental body tasked with combating money laundering, has finalized a new set of recommendations that includes a requirement for cryptocurrency exchanges to gather customer information per KYC requirements and to share it with their counterparts. The news was first reported by Coindesk. Cryptocurrency exchanges will have to collect the following information: Originator’s … Continue reading New FATF Rule Recommends Cryptocurrency Exchanges Collect Customer Information

Mixed Response to SEC Case Against Kik

As the dust settles on the SEC’s suit against Kik, the list of supporters for Defend Crypto, a website that the messaging app service created to solicit donations for fighting the SEC in courts, has changed. Per the site’s latest version, Boston-based Circle, a crypto financial services company, is out. The name of San Francisco-based cryptocurrency exchange Coinbase has also been taken off the site’s … Continue reading Mixed Response to SEC Case Against Kik

Some Stablecoins “Might Be Getting Into The Land of Securities”: SEC Advisor

It is now the turn of stablecoins to come under the SEC scanner. According to reports, the SEC’s senior advisor for digital assets Valerie Szczepanik told audiences that stablecoins could raise regulatory issues under securities laws. “I’ve seen stablecoins purport to control price through some kind of pricing mechanism, whether it’s tied to issuance creation or redemption of another type of digital asset tied to … Continue reading Some Stablecoins “Might Be Getting Into The Land of Securities”: SEC Advisor

SEC Chair Clayton: Safeguards Don’t Exist in Digital Currency Markets

SEC Chairman Jay Clayton relayed a mixed message to the crypto community during a conversation with Glenn Hutchins, founder of private equity firm Silver Lake Partners at the Coindesk Consensus Invest conference yesterday. Speaking in a personal capacity, Clayton praised blockchain – bitcoin’s underlying technology – and said that the technology had “incredible promise” for infrastructure in financial markets, beyond securities. But he also expressed … Continue reading SEC Chair Clayton: Safeguards Don’t Exist in Digital Currency Markets

South Korea To Recognize Crypto Exchanges As Regulated Financial Institutions

South Korea is taking a major step in legitimizing cryptocurrency exchanges by drafting standards that will eventually classify such exchanges as regulated financial institutions. The coverage area for the standards is broad and includes multiple elements of the cryptocurrency and blockchain ecosystem. The government is soliciting inputs from a wide variety of stakeholders. According to reports, the list consists of 43 government ministries, 17 regional … Continue reading South Korea To Recognize Crypto Exchanges As Regulated Financial Institutions