On October 15, 2021, the Department of Treasury’s Office of Foreign Assets Control issued “Sanctions Compliance Guidance for the Virtual Currency Industry” and related updated FAQs.
Continue Reading OFAC Continues to Emphasize Regulatory Focus on Virtual Currency Regulation Through Its Sanctions Programs
Cryptocurrencies
Timely Trademarks Are Important to Crypto: Dogecoin Disputes Illustrate Potential Naming Issues
By James E. Rosini & Christopher Gresalfi on
Posted in Cryptocurrencies
A recent dispute over trademark ownership to the name of meme-fueled Dogecoin highlights the importance of trademark rights in the ever-growing world of cryptocurrencies.
Continue Reading Timely Trademarks Are Important to Crypto: Dogecoin Disputes Illustrate Potential Naming Issues
CFTC Charges Crypto Platforms for Registration and Trading Violations
By Scott H. Kimpel on
Posted in Cryptocurrencies, Regulatory
In 15 recent enforcement actions, the Commodity Futures Trading Commission announced charges against various digital asset exchanges for failure to register appropriately as futures commission merchants. This series of actions is the latest in an ongoing regulatory crackdown across federal agencies involving cryptocurrency and other digital asset trading platforms.
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OFAC Designates Virtual Currency Exchange as Malicious Cyber Actor
By Hunton Andrews Kurth LLP on
Posted in Crypto Exchanges, Cryptocurrencies
On September 21, 2021, the U.S. Department of the Treasury’s Office of Foreign Assets Control issued an Updated Advisory on Potential Sanctions Risks for Facilitating Ransomware Payments on the sanctions risks associated with facilitating ransomware payments. OFAC, with assistance from the FBI, also designated SUEX OTC, S.R.O., as a malicious cyber actor, the first such sanctions designation against a virtual currency exchange.
Continue Reading OFAC Designates Virtual Currency Exchange as Malicious Cyber Actor
NCUA Seeks Information on Distributed Ledger Technology and Digital Assets
By Patrick J. Boot on
Posted in Cryptocurrencies
The National Credit Union Administration recently published a request for information in the Federal Register that encourages credit unions and other industry participants to provide information on the current and potential impact of digital assets and related technologies on federal credit unions.
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New Jersey Orders DeFi Platform to Cease Offering Interest-Bearing Crypto Accounts
By Scott H. Kimpel on
Posted in Cryptocurrencies, Regulatory
On July 20, 2021, New Jersey’s Acting Attorney General announced that the State’s Bureau of Securities issued a Summary Cease and Desist Order to stop BlockFi, Inc. from selling unregistered securities in the form of interest-bearing cryptocurrency accounts. While commentators frequently focus on the enforcement activities of the Securities and Exchange Commission in the crypto space, New Jersey’s action against DeFi platform BlockFi serves as a reminder that state securities regulators also actively police this marketplace.
Continue Reading New Jersey Orders DeFi Platform to Cease Offering Interest-Bearing Crypto Accounts
“Doctor Bitcoin” Pleads Guilty to Illegal Crypto Conversion Scheme
By Kevin E. Gaunt & Halyna Hnatkiv on
Posted in Cryptocurrencies, Regulatory
Mark Alexander Hopkins, known as “Doctor Bitcoin,” pled guilty in the Northern District of Texas on June 29, 2021, to illegally operating a cash-to-cryptocurrency conversion business. According to a press release from the Department of Justice, Hopkins pled guilty to one count of operation of an unlicensed money transmitter business.
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Texas Department of Banking Clarifies Authority of State Banks to Provide Virtual Currency Custody Services
By Patrick J. Boot on
Posted in Cryptocurrencies, Regulatory
On June 10, 2021, the Texas Department of Banking issued an industry notice addressing the authority of Texas state-chartered banks to provide virtual currency services to customers. This is a notable development as Texas has the most state-chartered banks of any state in the country.
Continue Reading Texas Department of Banking Clarifies Authority of State Banks to Provide Virtual Currency Custody Services
U.S. Treasury Announces Cryptocurrency Reporting Requirements
By Hunton Andrews Kurth LLP on
Posted in Cryptocurrencies, Regulatory
On May 20, 2021, the U.S. Department of the Treasury announced a proposal that would require any cryptocurrency transaction of $10,000 or more to be reported to the Internal Review Service.
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SEC Staff Issues Statement on Bitcoin Futures
By Scott H. Kimpel on
Posted in Cryptocurrencies, Regulatory
On May 11, 2021, staff in the Division of Investment Management (IM) at the Securities and Exchange Commission issued a statement (the Statement) on “Funds Registered Under the Investment Company Act Investing in the Bitcoin Futures Market.” The Statement provides a series of warnings to retail investors about certain risks associated with investments in registered mutual funds whose portfolios include Bitcoin futures. But the Statement also provides further insight into the way SEC staff analyze the market for Bitcoin Futures more broadly.
Continue Reading SEC Staff Issues Statement on Bitcoin Futures