Politics, Legal & Regulation

Policy and regulations impacting innovations in Finance.

Saudi Finance Ministry: Virtual Currencies Not Approved

The Saudi Ministry of Finance has warned Saudi citizens that transactions involving cryptocurrencies could have “negative consequences” for traders because they occur, “outside the monitoring umbrella within Saudi Arabia,” Zawya reports. According to FX Street, the country’s “Special Governmental Committee for Awareness on Dealing with… Read More

After 4-Month Fight, Bitfinex Ordered to Provide Business Records

A judge presiding over proceedings in a case of alleged fraud by crypto trading platform Bitfinex (and associated companies) has ordered the companies to provide records compelled under ex parte orders issued in New York in April. Almost immediately after the orders were issued, Bitfinex… Read More

Alleged Paid Pump House ICO Rating Settles Charges with SEC with $270,000 Fine

ICO Rating, a Russia based initial coin offering and research firm, has paid a fine to the US Securities and Exchange Commission (SEC) regarding allegations that it failed to disclose payments received from issuers for publicizing their digital asset securities offerings. According to a statement from… Read More

Canadian Court Upholds Vanbex Asset Seizure

A British Columbia Supreme Court judge has upheld an asset seizure from Lisa Cheng and Kevin Hobbs, principles of a “blockchain consultancy” called Vanbex, who, according to the Royal Canadian Mounted Police (RCMP), conducted an allegedly fraudulent $30 million CAD ICO (Etherparty/FUEL), “…by falsely representing corporate… Read More

On the Second Anniversary of the DAO: The Token Universe’s Cat Food Moment

Recently we marked the second anniversary of the SEC’s issuance of an Investigative Report finding that the DAO Tokens were securities.   While this killed the hopes of those who had interpreted SEC silence to mean consent to the unregulated issuance of tokens, it still… Read More

Quote: Private capital raising is now outpacing capital raising in our public markets, yet our Main Street investors have no effective access to investments in private capital offerings

In the US, the definition of an “Accredited Investor” is an individual who earns over $200,000 a year or has $1 million in net assets minus their primary residence. If you are married, that number moves higher. Yet, as it stands today, this definition does… Read More

Fintech: The Reserve Bank of India Posts Framework for Regulatory Sandbox

The Reserve Bank of India (RBI) has published the final “Enabling Framework for Regulatory Sandbox,” as it joins a growing legion of government entities seeking to facilitate Fintech innovation in a compliant manner.  The draft Framework for the Regulatory Sandbox (RS) was published in April… Read More

Israel Capital Markets Authority Expected to Expedite Fintech Licenses to Boost Innovation

According to a report, the Capital Markets, Insurance and Savings Authority of Israel is seeking to expedite the approval of Fintech licenses including blockchain-focused firms. Calcalist reports that the Authority is “working quickly to arrange licenses for Fintech companies” as it aims to boost innovation… Read More

US Lawmakers, Led by Maxine Waters, in Switzerland to Discuss Facebook’s Libra Cryptocurrency

A delegation of US lawmakers, led by Representative Maxine Waters, will be in Switzerland this week, on a trip that may have been spurned by Facebook’s decision to domicile it’s Libra cryptocurrency project in a nation known for both progressive financial policies and money-laundering, NZZ… Read More

FinCEN Director: Casinos Must Report Suspicious Transactions, Including Suspect Use of Cryptocurrencies

America’s federal financial crimes enforcement agency, FinCEN, has noticed “a gap” in the reporting of illicit use of cryptocurrencies at casinos and card clubs in recent years, the agency’s director told attendees at the 12th Annual Las Vegas Anti-Money Laundering Conference this week. Director Kenneth A…. Read More

ASA: UK Advertising Regulator Sanctions Crypto Derivatives Platform BitMEX for “Misleading” Ad

The UK’s Advertising Standards Authority has upheld complaints against crypto-derivatives trading platform BitMEX claiming the company violated UK advertising standards with an ad it published on the front page of a national newspaper in January. According to the ASA, the “misleading” ad featured a logarithmic… Read More

Santander Still Banking Coinbase, Barclays Out, Clearbank Steps In

Coinbase, a large, US-based cryptocurrency trading platform, experienced a shake up of its UK banking services this week. On Wednesday, an anonymous “rBitcoin” forum participant on Reddit posted that (Banco) Santander was refusing to deposit money to the individuals’ Coinbase UK account, probably because of… Read More

US State of Maryland Joins “Operation Cryptosweep”

Maryland Attorney General Brian E. Frosh announced this week that the Maryland Securities Division has joined “Operation Cryptosweep,” a coordinated crackdown on fraudulent cryptocurrency projects involving least 40 North American state and provincial regulators. Frosh notes that an environment of sometimes surging interest in cryptocurrencies can… Read More

SEC Settles with Blockchain based Health Care Platform SimplyVital Health in Regards to Initial Coin Offering

The Securities and Exchange Commission (SEC) filed an Administrative Proceeding earlier this week regarding an initial coin offering (ICO) affiliated with SimplyVital Health – a company that pursued an ICO in late 2017 and early 2018. The SEC claims that SimplyVital sold unregistered securities. SimplyVital… Read More

Singapore: Tax Draft May Make Exchange of Digital Payments Tokens Exempt from Tax

Singapore has emerged as an Asian hub of crypto innovation. The southeast Asian country has always been Fintech friendly as policymaker has sought to establish a jurisdiction of financial innovation. Published last month, the Inland Revenue Authority of Singapore proposed an approach to crypto that… Read More

SEC: CFO of MCA Site 1 Global Capital Raised $322 Million and Allegedly Defrauded 1000s of Investors

The Securities and Exchange Commission (SEC) Enforcement Division has charged Alan Heide with defrauding retail investors. Heide was the former CFO of 1 Global Capital – a merchant cash advance platform (MCA). 1 Global is now bankrupt and former principles Carl Ruderman and Henry J…. Read More

Attorney Lewis Cohen of DLXLaw Discusses Pocketful of Quarters Digital Asset No Action Letter from SEC

DLXLaw, a boutique law firm that specializes in blockchain and smart contracts, recently helped a digital asset issuer receive a no-action letter (NAL) from the Securities and Exchange Commission (SEC). By receiving the NAL, the issuer, Pocketful of Quarters, received an implicit green light to… Read More

Institutional Platform Lendingblock Receives DLT License in Gibraltar as it Preps for Launch

Lendingblock, a platform that enables fully collateralized crypto vs crypto lending agreements, has received a Distributed Ledger Technology (DLT) provider license from the Gibraltar Financial Services Commission (GFSC). Lendingblock received an in-principle DLT license in late 2018. By providing collateralized borrowing and lending, Lendingblock can… Read More

Peer to Peer Lender Fincera Targeted by Local Chinese Government in Demand to Cease Lending Operations

Fincera Inc. (OTCQB: YUANF), a China-based peer to peer lending platform providing access to capital for SMEs, has become the target of a local government attempt to shut down P2P lenders. According to a note from Fincera, the Hebei provincial government, where Fincera is based,… Read More

deVere Group CEO Comments on HM Revenue & Customs Move to Garner Crypto Transaction Information

“Another clear sign that cryptocurrencies like Bitcoin, Ethereum and XRP are not only part of mainstream finance, but also the future of money.” deVere Group CEO Nigel Green believes recent actions by UK tax authorities are signs that cryptocurrency is winning the battle of becoming… Read More

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