Cryptocurrency – Page 4 – FinTech and Blockchain Law Watch

Rhode Island & Nevada Enter the Cryptocurrency Fray

Aug 28 2019

Effective January 1, 2020, Rhode Island will join the growing list of states that require entities to obtain a money transmitter license to provide certain services involving cryptocurrency (a.k.a. virtual currency). The Rhode Island General Assembly recently amended the state’s money transmitter law to require licensing for “currency transmission,” which is defined to include “maintaining control of virtual currency or transactions in virtual currency on behalf of others.” Similar to other states, the revised statute defines “control” as “the power to execute unilaterally or prevent indefinitely a virtual currency transaction.”

When Does “Actual Delivery” of a Purchased Cryptocurrency Occur? U.S. Ninth Circuit Court of Appeals Sheds Some Light

Aug 07 2019

By Judith Rinearson

Back in 2018, four different courts in the U.S. held that cryptocurrencies were commodities. This did not cause a huge ripple in the cryptocurrency community because the Commodity Exchange Act does not apply to retail commodity sales if the “actual delivery” of the commodity occurs within 28 days after the execution of the transaction, and generally cryptocurrencies are delivered in merely a few days or less.

A Future without Crypto Futures?

Jul 19 2019

By Jim Bulling, Felix Charlesworth and Charles McDonald

The UK’s Financial Conduct Authority (FCA) has touted further regulation of cryptocurrency markets. In their Consultation Paper (Paper) published on 3 July 2019, the FCA has announced it will begin the consultation process on its proposed move to ban the sale, marketing, and distribution to retail consumers of derivatives and exchange traded notes (ETNs) that reference certain types of cryptoassets.

New FATF Guidance Will Significantly Impact the Crypto Industry

Jun 27 2019

By Jeremy McLaughlin and Judie Rinearson

The Financial Action Task Force (“FATF”), an intergovernmental organization aimed at combatting money laundering and thwarting terrorist financing, recently issued final recommendations for the regulation of cryptocurrencies. Although the recommendations are not binding on members–it will be up to each of FATF’s 37 member countries to determine whether to enact the recommendations through legislation or regulation–it is expected that they will have widespread adoption and significant implications for the cryptocurrency industry.

Crypto-asset Regulation Attracts the Attention of Global Securities Regulators

Jun 20 2019

By Jim Bulling, Edwin Tan and Andrew Fay

On 28 May 2019, the International Organization of Securities Commissions (IOSCO) published Consultation Paper CR02/2019 (Paper), which identifies the risks and regulatory considerations associated with the trading of crypto-assets on crypto-asset trading platforms (CTPs). The Paper seeks input from industry participants amid a growing demand for an international approach to the regulation of crypto-assets, recently illustrated by the G20’s joint request for global regulators to monitor risks and consider multilateral responses in relation to crypt-assets as needed.

ECB Task Force recommends regulation of crypto-asset gatekeepers

May 27 2019

By Giovanni Campi

The European Central Bank’s Internal Crypto-Assets Task Force (“ICA-TF”) issued a report analysing the implications of crypto-assets for financial stability, monetary policy, payments and financial markets infrastructures (“FMIs”).

International Cryptocurrency Regulation Top of the Agenda for the Japan G20 Summit

Apr 26 2019

By Jim Bulling, Felix Charlesworth and Andrew Fay

In the lead up to the annual G20 Summit, to be hosted by Japan, Prime Minister Shinzō Abe has commissioned the creation of a cryptocurrency governance manual. The manual, which will be distributed at the G20 Summit, supports a uniform approach to regulating cryptocurrencies and contains regulatory proposals and justifications relating to the following issues:

protecting customer assets;
international security protocols; and
providing customers with information (particularly in the event of a hack).

Cryptocurrency firms struggle to engage auditors

Apr 04 2019

By Jim Bulling and Andrew Fay

In January 2019, Canada’s largest cryptocurrency exchange, QuadrigaCX, announced that it had lost $180 million of virtual currency, prompting calls for tighter regulatory oversight of the industry.

Canada is home to 18 publicly listed cryptocurrency companies, more than any other jurisdiction in the world. This puts Canada at the heart of the issue, and has also put the Canadian Public Accountability Board (CPAB) on notice. The CPAB, which regulates auditors, has confirmed that it has been reviewing how existing Canadian audit standards apply to the cryptocurrency industry. Canada, like Australia, subscribes to the International Financial Reporting Standards.

Surge In Cryptocurrency Exchange Hacking Activity

Feb 26 2019

By Jim Bulling and Edwin Tan

Cryptocurrency exchanges have always been a prime target for hacking activity due to the vast amounts of cryptocurrency and money held within each exchange. Finding and exploiting weaknesses in exchanges can be very profitable for hackers, and such hacking activity has grown exponentially year on year.

In late December 2018, Coindesk published an article revealing that the amount of cryptocurrency stolen from exchanges increased 13 times in 2018 compared to 2017. Analytics firm Chainalysis reported that approximately $1 billion worth of cryptocurrency was stolen from digital currency exchanges in 2018.

Crypto founder’s death elevates taking a secret to the grave to the next level

Feb 12 2019

By Cameron Abbott and Ella Richards

In an age where cyber security breaches are a near daily occurrence, and where we’re frequently reminded to keep our passwords secret and safe, the story that’s emerged regarding the fate of over AU$190 million of crypto-currency following the death of Gerald Cotten, the founder of Quadriga CX, is a little ironic to say the least.

The untimely death of the 30-year-old in December brought with it an unexpected sober reality – Mr Cotten was the only person with access to Quadriga’s coin reserve. No really … the ONLY person… you can see where this is going can’t you?

Tag:Cryptocurrency