Cryptocurrencies & ICOs – Page 10 – FinTech and Blockchain Law Watch

Newly Released Virtual-Currency Businesses Act Augurs Increased State Regulation of Bitcoin, Ether, and other Digital and Crypto Currencies

Nov 09 2017

On October 9, 2017, the Uniform Law Commission released the final version of its Uniform Regulation of Virtual-Currency Businesses Act (“VCBA”). The Act repeatedly references both state money transmission laws and Financial Crimes Enforcement Network money services business regulations, noting that the VCBA is intended to provide protections and obligations that are generally similar to those legal regimes.

Initial Coin Offerings: Key Considerations You Absolutely, Positively Need to Know About Before Launching an ICO

Nov 08 2017

By Edward Dartley, Anthony R.G. Nolan, Mary Burke Baker, John ReVeal and Amanda M. Katlowitz

Initial Coin Offerings (ICOs) have rapidly emerged as the hottest trend in FinTech financing, albeit one that is not without controversy. Put simply, an ICO is a method of fundraising somewhat akin to an initial public offering of securities, except that in an ICO, the fundraiser uses blockchain technology to issue customized cryptocurrencies (commonly known as coins or tokens), typically in exchange for other established cryptocurrencies such as Bitcoin and Ether. The proceeds of an ICO can provide kick-start funding to develop the technology and platforms for the token holder’s access. An ICO that is properly conceived and structured can provide relatively easy transferability of tokens and the potential for those tokens to be traded on exchanges or resold and converted to government-issued legal tender, also known as fiat currency.

The dramatic rise in value of Bitcoin, Ether, and other cryptocurrencies in recent months has generated great interest in this new form of financing, with new players entering the market literally every day and raising millions in new financing in very short offering times. At the same time, ICOs raise a myriad of complex legal issues in the United States and around the world.

To read more, click here.

A U.S. BitLicense? OCC Acting Comptroller Sounds Open to It

Oct 26 2017

By Eric A. Love and Hilda Li

In remarks delivered during a recent FinTech conference at the Federal Reserve Bank of Philadelphia, U.S. Office of the Comptroller of the Currency (OCC) Acting Comptroller Keith Noreika signaled that he is open to cryptocurrency companies applying for an OCC-issued FinTech charter. According to the Acting Comptroller, part of the OCC’s role is to determine whether issuance of such a charter to cryptocurrency companies is consistent with the OCC’s “statutory obligations.” He cautioned that, “just because you get in the door, doesn’t mean you get out the door on the other side with a charter.” Video of the Acting Comptroller’s full remarks can be viewed here.

What you need to know about capital raising with ICOs (Business Bytes video)

Sep 28 2017

There is a lot of noise surrounding capital raising with Initial Coin Offerings (ICOs) and there are updates almost daily from regulators around the globe. For instance, the Australian Securities and Investments Commission (ASIC) released their views on ICOs today (see ‘ASIC releases its guidance on ICOs‘), while China has recently banned this new form of capital raising.

ASIC releases its guidance on ICOs

Sep 28 2017

By Jim Bulling and Felix Charlesworth

On 28 September 2017, the Australian Securities and Investments Commission (ASIC) released Information Sheet 225 which provides its view on initial coin offerings (ICOs) and their application in relation to the Corporations Act 2001 (Cth).

Australian Government to end double taxation on digital currency

Sep 20 2017

By Matthew Cridland

Treasurer Scott Morrison has introduced legislation into the Australian Parliament to remove the double taxation of digital currency.

Initial Coin Offerings (ICOs) under German law

Sep 20 2017

By Hilger von Livonius and Philipp Riedl

The raising of funds for cryptocurrency projects (also called Initial Coin Offerings or ICOs) gain more and more market interest. Although there is no specific and coordinated regulatory framework applicable to ICOs, it is not something happening in a completely unregulated area.

Federal Government extends AML/CTF regulation to capture digital currency exchanges

Aug 31 2017

By Michelle Chasser and Felix Charlesworth

On Thursday 17 August 2017, the Minister for Justice tabled the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017 (Bill).

The Bill will extend the Australian AML regime to cover digital currency exchange providers. Currently the AML regime applies only to ‘e-currencies’ which are backed by physical things such as bullion or precious metals while digital currencies backed by a cryptographic algorithm such as Bitcoin are excluded. The Bill repeals the definition of ‘e-currency’ and replaces it with the broader term ‘digital currency’ which is defined as a digital representation of value that:

functions as a medium of exchange;
is not issued by the authority of a government body;
is interchangeable with money; and
is generally available to members of the public.

Monetary Authority of Singapore on Initial Coin Offerings

Aug 29 2017

By Judith Rinearson and Rizwan Qayyum

On August 10, 2017, the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) jointly published a Consumer Advisory document which urged consumers to exercise due diligence before investing in digital tokens, with particular emphasis on the emergence of Initial Coin Offerings (ICOs). In Singapore, several ICOs have taken place in the past year and this has resulted in organisations raising millions of dollars in a few days since their launch.

An ICO is a crowdfunding method, facilitated by blockchain, through which a project or venture, usually a start-up organisation, raises funding by creating and selling its own digital asset, currency or token in exchange for digital currencies or assets of immediate value such as a Bitcoin. The practice is thus far unregulated and enables a new brand of alternative finance. An ICO campaign ‘runs’ for a defined period during which investors are able to support the project, with the aspiration that this digital asset becomes successful and their investment reaps profit.

Cryptocurrencies becoming more mainstream?

Jun 19 2017

By Jim Bulling and Michelle Chasser

Steps have been taken this year in Japan and Norway towards the integration of digital currencies such as Bitcoin into the mainstream financial sector. Japan has amended financial laws to include coverage of digital currencies as a type of ‘prepaid payment instrument’, and an online bank in Norway has announced plans to offer clients the ability to link their bank accounts with cryptocurrency accounts.

Category:Cryptocurrencies & ICOs