Takeaways -
..The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued the first-ever smart contracts sanction, and its decision to sanction a nonperson may be challenged in court.
..The U.S....more
8/23/2022
/ Corporate Counsel ,
Cryptocurrency ,
Cyber Crimes ,
Decentralized Finance (DeFi) ,
Economic Sanctions ,
Ethereum ,
Money Laundering ,
Office of Foreign Assets Control (OFAC) ,
SDN List ,
Smart Contracts ,
U.S. Treasury
On July 25, 2022, the Securities and Exchange Commission (SEC or the Commission) made headlines announcing insider trading charges against 10 individuals across four separate cases, signaling an increased and renewed focus on...more
Significant parallel actions commenced this week by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) bring crypto fraud enforcement into the spotlight, with the SEC alleging that multiple...more
7/25/2022
/ Coinbase ,
Criminal Prosecution ,
Cryptoassets ,
Department of Justice (DOJ) ,
Digital Wallets ,
Enforcement Actions ,
Ethereum ,
Howey ,
Illegal Tipping ,
Indictments ,
Insider Trading ,
Material Nonpublic Information ,
Proposed Rules ,
Rule 10(b) ,
Rule 10b-5 ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Securities Tokens ,
Securities Violations
Key Takeaways -
..The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is prohibiting the provision of accounting, trust and corporate formation, and management services to any person in the...more
7/19/2022
/ Biden Administration ,
Blocked Entities ,
Blocked Person ,
Consultants ,
Economic Sanctions ,
Executive Orders ,
Export Controls ,
Exports ,
Franchise Taxes ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Service Contracts
Key Takeaways -
..In June 2022, the DOJ issued a Report recommending increased cooperation amongst international law enforcement to combat crimes involving digital assets.
..The Report identified characteristics...more
6/30/2022
/ Banking Sector ,
Biden Administration ,
Central Bank Digital Currency (CBDCs) ,
Criminal Investigations ,
Cross-Border ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Executive Orders ,
FATF ,
Information Reports ,
Law Enforcement
On June 7, Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced S. 4356, the Responsible Financial Innovation Act (Lummis-Gillibrand Bill). If enacted, the legislation would create a regulatory framework...more
New Cryptocurrency Payments Systems, Tokens and Trade Associations Launch -
A leading global cryptocurrency platform has reportedly announced a partnership with a global e-commerce platform that would allow e-commerce...more
6/6/2022
/ Bitcoin ,
Blockchain ,
Bureau of Industry and Security (BIS) ,
Central Bank Digital Currency (CBDCs) ,
CFTC ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
European Central Bank ,
Financial Stability Board ,
FinTech ,
Fraud ,
G7 ,
Insider Trading ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Risk Mitigation ,
U.S. Treasury ,
Virtual Currency
Our 2022 Data Security Incident Response Report discussed the increased regulatory scrutiny of cybersecurity incidents and defenses following a year of high-profile and damaging cyberattacks, including the Russia-based...more
According to reports, a major U.S.-based global investment bank has allowed a borrower to use bitcoin as collateral for a cash loan, for the first time in the bank’s history. In other financial news, according to reports, the...more
5/9/2022
/ Banks ,
Bitcoin ,
Bitcoin Mining ,
Blockchain ,
Collateral ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Department of Justice (DOJ) ,
Enforcement Priorities ,
Environmental Protection Agency (EPA) ,
FinCEN ,
Fraud ,
Hackers ,
Non-Fungible Tokens (NFTs) ,
NYDFS ,
Patriot Act ,
Retailers ,
Securities and Exchange Commission (SEC)
Key Takeaways -
..SEC enforcement actions related to crypto and cyber are expected to significantly increase with the additional 20 staff assigned to the Division of Enforcement unit dedicated to these industries....more
Key Takeaways -
..The Joint Chiefs of Global Tax Enforcement (J5) issued its first intelligence bulletin providing guidance to banks, law enforcement partners and private investigators regarding indicators of potential...more
5/4/2022
/ Anti-Money Laundering ,
Banking Sector ,
Fraud ,
International Tax Authority ,
International Tax Issues ,
IRS ,
Joint Task Force ,
Know Your Customers ,
Law Enforcement ,
Market Participants ,
New Guidance ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Tax Authority ,
Tax Evasion ,
Tax Fraud
A major U.S. fintech firm recently announced the launch of a “crypto payouts” pilot that will allow a select group of creators to receive cryptocurrency payments through a major social media platform. According to a press...more
5/2/2022
/ 401k ,
Anti-Money Laundering ,
Bitcoin ,
Bitcoin Mining ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Wallets ,
El Salvador ,
Enforcement ,
Evasion ,
FinTech ,
Indictments ,
New Regulations ,
Non-Fungible Tokens (NFTs) ,
Online Platforms ,
Popular ,
Stablecoins
Sports Teams and Messaging Apps Go All-In on NFTs, Potential Hack
Foiled -
A major U.S. football team has reportedly inked a lucrative sponsorship deal with a popular digital asset platform. According to reports, the...more
4/18/2022
/ ATMs ,
Bitcoin ,
Blockchain ,
Cryptocurrency ,
Digital Assets ,
Enforcement Actions ,
FinTech ,
Hackers ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Regulatory Agenda
Crypto Payment Initiatives Announced in Stablecoins, Lightning Network, Mining -
Late last week, the issuer of USD Coin (USDC) announced that it had selected a major U.S. bank as a primary custodian for USDC reserves....more
4/11/2022
/ Bitcoin ,
Bitcoin Mining ,
Cryptoassets ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Distributed Ledger Technology (DLT) ,
Economic Sanctions ,
HM Treasury ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Proposed Legislation ,
Russia ,
Securities and Exchange Commission (SEC) ,
Stablecoins ,
UK ,
Ukraine ,
United Nations
On March 9, 2022, President Joe Biden signed the Executive Order on Ensuring Responsible Development of Digital Assets (EO) and the White House released a corresponding fact sheet summarizing related key policy objectives. As...more
Key Takeaways -
..The court denied Ripple’s senior executives’ motions to dismiss, finding that the SEC had met its pleading burden.
..The court also denied the SEC’s motion to strike Ripple’s fair-notice affirmative...more
On March 9, 2022, the SEC released proposed rules intended to enhance and standardize disclosures regarding cybersecurity risk management, strategy, governance and cyber incident reporting by companies that are subject to the...more
3/14/2022
/ Comment Period ,
Cyber Incident Reporting ,
Cybersecurity ,
Disclosure Requirements ,
Foreign Private Issuers ,
Form 8-K ,
Policies and Procedures ,
Proposed Rules ,
Publicly-Traded Companies ,
Regulation S-K ,
Risk Management ,
Securities and Exchange Commission (SEC)
Traditional Financial Firms Expand Reach into Cryptocurrency Sphere -
Early this week, a major investment bank announced that it plans to launch a digital asset custody platform later this year. This announcement follows...more
3/7/2022
/ Charitable Donations ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Donations ,
Enforcement Actions ,
Enforcement Priorities ,
FATF ,
Non-Fungible Tokens (NFTs) ,
Ponzi Scheme ,
Popular ,
Securities and Exchange Commission (SEC) ,
Ukraine
Financial Services Firms Make Moves Targeting Cryptocurrency Markets -
A major U.K.-based stock exchange recently announced plans to acquire a provider of cloud-based technology, including order and execution management...more
Key Takeaways -
..Banks and cryptocurrency exchanges need to update their BSA programs to account for the unique aspects of cryptocurrencies, detect and report related suspicious activity, and minimize the risk of...more
2/17/2022
/ BSA/AML ,
Compliance ,
Corporate Criminal Fines ,
Criminal Prosecution ,
Crypto Exchanges ,
Cryptocurrency ,
Cyber Crimes ,
Department of Justice (DOJ) ,
Digital Currency ,
FBI ,
Financial Institutions ,
FinCEN ,
Policies and Procedures ,
U.S. Treasury ,
White Collar Crimes
As one of its latest enforcement actions, the Securities and Exchange Commission (“SEC” or “Commission”) continued its push into the fintech space by charging an alternative data provider with securities fraud for the first...more
CBDC Initiatives Announced, Blockchain Trade Finance Platform Launches - This week, the Bank for International Settlements (BIS) announced Project Dunbar, an initiative in which BIS will collaborate with the Reserve Bank of...more
9/7/2021
/ Bitcoin ,
Blockchain ,
Central Bank Digital Currency (CBDCs) ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Digital Currency ,
Financial Markets ,
Fraud ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Securities and Exchange Commission (SEC) ,
Virtual Currency
The Securities and Exchange Commission (“SEC”) recently issued a request for information and public comment on the use of new and emerging technologies by investment advisers and broker-dealers that suggests potential...more
Crypto Market Develops in DeFi, Payments, Compliance and Consumer Adoption - A large institutional financial and media conglomerate recently announced a partnership with a major financial services and investment management...more
8/30/2021
/ Blockchain ,
CFTC ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Digital Currency ,
Financial Markets ,
Non-Fungible Tokens (NFTs) ,
Online Marketplace ,
Popular ,
Securities and Exchange Commission (SEC) ,
Virtual Currency
Crypto Firms Pursue Bank Charters, Traditional Financial Firms Integrate Crypto - This week, the Wyoming Division of Banking granted a new Special Purpose Depository Institution (SPDI) bank charter to Commercium Financial...more