Archive:2024

1
Australia: Crypto in the Courts
2
South Carolina Becomes the Fifth State to Enact An Earned Wage Access Law
3
EU/Luxembourg Update on the Regulation on Markets in Crypto-Assets and the Digital Operational Resilience Act
4
AML Reforms Part 2: Digital Currency Service Providers
5
AML Reforms Part 1: Remittance Service Providers
6
The CFPB Turns Its Focus To Credit Card Reward Programs
7
In an About-Face, Pennsylvania to Regulate Virtual Currency as Money
8
Australia: BNPL Regulation Takes Another Step Forward
9
SFC Circular on SFC-Authorized Funds with Exposure to Virtual Assets–Part 1
10
The Aloha State Finally Welcomes Crypto

Australia: Crypto in the Courts

By: Daniel Knight and Ben Kneebush

On 4 June 2024, the latest chapter in ASIC’s crypto-asset enforcement efforts unfolded with the Federal Court relieving Block Earner from liability to pay penalties in connection with providing unlicensed financial services (ASIC’s media release can be found here).

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South Carolina Becomes the Fifth State to Enact An Earned Wage Access Law

By: John ReVeal and Jennifer Crowder

On May 21, the South Carolina Governor signed a Bill to enact the Earned Wage Access Services Act (the Act), joining Kansas, Missouri, Nevada and Wisconsin as the fifth state to codify earned wage access (EWA) services. Many other states are considering such legislation, while a few others have so far relied on regulatory opinions or guidance.

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EU/Luxembourg Update on the Regulation on Markets in Crypto-Assets and the Digital Operational Resilience Act

By: Dr. Jan Boeing and Tanner Wonnacott

MiCA Update

The Regulation on Markets in Crypto-assets (MiCA)1 is part of the European Commission’s Digital Finance Package of September 2020, which includes other regulatory initiatives, such as the Pilot Regime for market infrastructures based on distributed ledger technology2 and the Digital Operational Resilience Act (DORA).3

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AML Reforms Part 2: Digital Currency Service Providers

By: Daniel Knight and Kithmin Ranamukhaarachchi

The Australian Attorney-General’s Department (Department) has released five consultation papers outlining proposals for extensive reforms to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime.

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The CFPB Turns Its Focus To Credit Card Reward Programs

By: Jeremy McLaughlin and Chelsie Rimel

The Consumer Financial Protection Bureau (CFPB or Bureau) released a new report spotlighting common consumer complaints for credit card rewards programs. The Bureau and its Director, Rohit Chopra, have been focused on payments oversight, including by proposing a rule last Fall that would apply to nonbank entities that provide digital wallets. The new report discusses the relationship between consumers and the providers of reward programs, and it stresses the need for fairness and transparency.

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In an About-Face, Pennsylvania to Regulate Virtual Currency as Money

By: Jeremy McLaughlin and Joshua Durham

Based on a new statement of policy (“Statement”) issued on 20 April 2024 by Pennsylvania’s Department of Banking and Securities (“Department”), effective 15 October 2024, the Department will include virtual currency in the definition of “money” for purposes of the state’s money transmission law (“Law”). Previously, in January 2019, the Department had issued guidance concluding the opposite, that only fiat currency constituted “money” under the Law. The Department’s about-face follows other state regulators that have increasingly concluded that virtual currency is regulated under their state money transmission laws.

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Australia: BNPL Regulation Takes Another Step Forward

By: Dan Knight and Ben Kneebush

On 12 March 2024, the Australian Treasury released for consultation an exposure draft legislative package that proposes to amend the current regulatory framework to regulate low cost credit contracts (LCCCs), including Buy Now Pay Later (BNPL) arrangements and other types of credit contracts. These changes are designed to be flexible, adaptable and proportionate to the risk of consumer harm.

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SFC Circular on SFC-Authorized Funds with Exposure to Virtual Assets–Part 1

By: Jay Lee and Anson Chan

Earlier this year, the US Securities and Exchange Commission approved 11 spot Bitcoin ETFs. In Hong Kong, in view of rapid developments of virtual asset (VA) products and growing investment products offering exposure to VAs, the Securities and Futures Commission (SFC) issued a circular, on 22 December 2023, detailing requirements for investment funds with exposure of more than 10% of net asset value (NAV) to VA seeking authorization for public offerings in Hong Kong (Circular).

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The Aloha State Finally Welcomes Crypto

By: Jeremy McLaughlin and Joshua Durham

Hawaii has long been a thorn in the side of crypto companies. That thorn has finally been removed: on 25 January 2024, the Hawaii Department of Commerce and Consumer Affairs issued a press release summarizing its findings on the proper regulatory framework for cryptocurrency—its conclusion is that it will not apply the state’s money transmitter law to cryptocurrency activities. Hawaii initially worked with cryptocurrency companies to create an alternative licensing framework, but was ultimately unable to conceive of an adequate digital asset license.

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