As reported in the Hunton Andrews Kurth LLP Privacy & Information Security Law Blog posted on June 6, 2019, Hunton’s Centre for Information Policy Leadership (“CIPL”) on May 31 issued a white paper on GDPR One Year In: Practitioners Take Stock of the Benefits and Challenges.
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Regulatory
Australian Regulator Issues Crypto Guidance
By Scott H. Kimpel on
In May 2019, the Australian Securities and Investments Commission (ASIC) issued Information Sheet 225, “Initial Coin Offerings and Crypto-Assets” (IS 225). IS 225 provides helpful guidance for Australian entrepreneurs considering whether to raise funds through an initial coin offering (ICO) and for businesses that are involved with crypto-assets such as cryptocurrency, tokens or stable coins in Australia.…
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New FinCEN Guidance on Virtual Currency
By Scott H. Kimpel on
On May 9, 2019, FinCEN, the U.S. federal agency charged with combating money laundering, issued two new interpretive documents of interest to the crypto community. The first is interpretive guidance titled “Application of FinCEN’s Regulations to Certain Business Models Involving Convertible Virtual Currencies”. The second document is an “Advisory on Illicit Activity Involving Convertible Virtual Currency”.…
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OFAC Strongly Encourages Companies to Develop and Implement an Effective Sanctions Compliance Program
By Hunton Andrews Kurth LLP on
Posted in Regulatory
On May 2, 2019 US Department of Treasury’s Office of Foreign Assets Control (OFAC) published “A Framework for OFAC Compliance Commitments” (the Framework), which provides a specific outline of what OFAC considers to be essential elements of an effective sanctions compliance program. Crypto businesses should consider the applicability of the Framework to their products. …
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The Initial Exchange Offering
By Scott H. Kimpel on
As this short video explains, the “initial exchange offering,” or IEO, is the latest innovation in the offer and sale of cryptocurrencies. By partnering with a crypto exchange to aid in marketing and listing efforts, issuers engaging in an IEO hope to obtain better visibility and liquidity for their products. But like the ICOs they seek to replace, IEOs raise a host of potential issues under the US federal securities laws.…
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FinCEN Announces First Enforcement Action Against Peer-to-Peer Virtual Currency Exchange
By Scott H. Kimpel on
Posted in Regulatory
On April 18, 2019, the Financial Crimes Enforcement Network (“FinCEN”) announced its first enforcement action against a peer-to-peer virtual currency exchanger, which also included its first civil monetary penalty against a virtual currency exchanger, for failure to file Currency Transaction Reports (“CTRs”).…
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DFS Denies Bittrex Applications for New York Virtual Currency and Money Transmitter Licenses
By Scott H. Kimpel on
Posted in Regulatory
In a letter released to the public on April 10, 2019, New York’s Department of Financial Services (DFS) denied Bittrex’s two separate applications to engage in a virtual currency business and to engage in money transmission activity in New York state.…
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SEC Staff Issues Security Token Framework
By Scott H. Kimpel on
Posted in Initial Coin Offerings, Regulatory
After months of teasing, on April 3 staff of the Securities and Exchange Commission (“SEC”) issued a long-awaited Framework for “Investment Contract” Analysis of Digital Assets. The Framework provides further guidance under the SEC’s Howey test as to whether digital assets constitute securities under federal law.…
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From Orange Groves to Cryptocurrency
By Scott H. Kimpel on
Writing with former SEC commissioner Troy Paredes, Hunton Andrews Kurth partner Scott Kimpel provides a complete survey of the federal securities laws’ impact on offerings of security tokens.…
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Colorado Enacts Digital Token Act
By Scott H. Kimpel on
Posted in Regulatory
The latest state to confront the utility token issue, Colorado recently enacted the Digital Token Act. The Act amends the provisions of the Colorado Securities Act that require the registration of all securities offerings in the state unless an exemption is available. Specifically, the Act provides a conditional exemption from registration for certain utility tokens qualifying as “digital tokens” that have a “consumptive purpose.” It also provides limited relief from broker-dealer registration for intermediaries effecting transactions in such digital tokens.…
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