Politics, Legal & Regulation

Policy and regulations impacting innovations in Finance.

SEC: Telegram Has Been Using Funds from GRAM Token Sale to Cover 90% of Expenses at Messenger Division

The Citizens Jury Wheel Legal Court Trial Justice Judge Law

In its latest submission in a case against private messaging app provider Telegram, the SEC claims that, Telegram has been using funds raised to develop the TON blockchain to rather cover operating expenses at the messaging business. Telegram raised $1.7 billion USD from 171 purchasers… Read More

China: WeiyangX Fintech Review

Tencent LiCaiTong Releases “Online Wealth Management Behavior and Security Report (2019)“ On January 14th, LiCaiTong, Tencent’s wealth management platform, and National Institution for Finance & Development (NIFD) jointly released the “Online Wealth Management Behavior and Security Report (2019)”. The report published the 2019 online wealth… Read More

Lawyer Amy ter Haar on the Ontario Securities Commission’s New Guidance for Cryptocurrency Trading Platforms

Toronto lawyer Amy ter Haar has provided her take on the Ontario Securities Commission’s (OSC’s) CSA Staff Notice 21-327: Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets. In short, the guidance could render any cryptocurrency trading platform subject to… Read More

SEC Schedules First “Capital Call” to Discuss State of Small Business Capital Formation

The Securities and Exchange Commission (SEC), Office of the Advocate for Small Business Capital Formation, has scheduled a public meeting to discuss the state of access to capital for smaller firms. The “Capital Call” is described as being held similar to a public company’s earnings… Read More

Tether Issues Statement on Consolidation of Class Action Lawsuits

Tether, the stablecoin that has endured a good share of challenges, has issued a statement on pending lawsuits targeting the company. According to a release,  the plaintiffs in three class action proceedings against Tether filed a letter with the U.S. District Court for the Southern… Read More

Another Alleged Scam ICO: SEC Pursues “Convicted Criminal,” Boaz Manor, Who Offered Fraudulent Initial Coin Offering

The Securities and Exchange Commission (SEC) has announced another enforcement action targeting a bogus initial coin offering (ICO). According to a release, the SEC has charged convicted criminal Boaz Manor, his business associate, and two businesses, CG Blockchain Inc. and BCT Inc. SEZC, with raising… Read More

Democrats on House Financial Services Committee Forward Letter to GAO Inquiring About Alternative Data and Access to Credit

Democrat members of the House Financial Services Committee have sent a letter to the Government Accountability Office (GAO) inquiring about the usage of alternative data by lenders and credit agencies. Congresswoman Maxine Waters (D-CA), Chairwoman of the Committee, Congressman Al Green (D-TX), Chair of the… Read More

Shaun Djie: Co-founder at Digix, a Smart-Asset Firm Leveraging Blockchain to Manage Gold Investments, Reveals Keys Industry Trends

We recently caught up with Shaun Djie, co-founder and chief operating officer at Digix, one of the first “smart-asset” companies leveraging blockchain tech to account for the authentication and provenance of 99.99% investment-grade gold bullions. Shaun currently serves as a board member for Singapore’s IT… Read More

Ontario Securities Commission: If Sole Control of “CryptoAssets” Does Not Go to Customer, Trading Platforms Subject to Securities Laws

The Ontario Securities Commission (OSC) has made a major announcement regarding the regulation of cryptocurrency and “cryptoasset” trading platforms in the country, one that could add significant operational costs in the near term. Under the guidance, unless they have obtained an exemption, cryptocurrency trading platforms in… Read More

After UK’s Exit from EU, Vilnius Set to Become Largest Center in the Bloc for Regulated Fintech Firms: Report

The Baltic region’s finance industry has been struggling and some of the area’s countries including Estonia, Latvia, and Lithuania have reportedly been indirectly involved in money-laundering scandals that were allegedly orchestrated by large Nordic banks. However, Lithuania’s capital has been able to develop its local… Read More

Chainalysis: Binance, Huobi, other Major Exchanges Used to Transfer $2.8 Billion in Bitcoin to Criminals in 2019

Chainalysis, a leading blockchain analytics and cybersecurity firm, revealed on January 15, 2020 that it had managed to trace $2.8 billion in Bitcoin (BTC) being transferred to criminals via cryptocurrency exchanges in 2019, with the vast majority of these transactions going through Binance and Huobi,… Read More

Report: Japan Will Further Constrict Leveraged Trading of Cryptocurrencies, Down to 2X of Balances

Japan’s Financial Services Agency (FSA) plans to further reduce allowable limits on leveraged cryptocurrency bets, down from 4X of customer deposits to 2X. Japan’s Cabinet voted to greatly reduce leveraged crypto trades on local platforms last April. At that time, permitted leveraged trades were reduced… Read More

CFTC Chair: “If I Hear Anything…It’s That We Really Need Clarity” on Cryptocurrency Regulations

The new chair of the Commodity Futures and Trading Commission (CFTC) has told Chedder Media that his agency is continuing to work closely with the SEC to establish definitions and jurisdiction when it comes to cryptocurrencies- though these have not yet been set. Since he… Read More

An ICO by Any Other Name: SEC Issues Investor Alert on Initial Exchange Offerings (IEOs)

The US Securities and Exchange Commission’s (SEC’s) Investor Education and Advocacy division is warning the public that, because both Initial Exchange Offerings (IEOs) and the platforms selling them may be unregistered and unregulated, investing in IEOs may be high risk- and not much different than… Read More

The New Proposed “Accredited Investor” Definition Changes And Why They Are A BIG Deal

While it passed somewhat under the radar with the holiday season, on December 18, 2019, the Securities and Exchange Commission (“SEC”) released a proposal to significantly amend the existing “accredited investor” definition; which is integral in determining who can participate in private securities transactions. The… Read More

Danger! Texas State Security Board Includes Cryptocurrency Offerings on List of Top Investor Threats

The Texas State Security Board (TSSB) has published its list of “Top Investor Threats in 2020 – and How to Avoid Them.” Included on the list are crypto offerings. The TSSB is the securities regulator for the state of Texas. The regulator has been active… Read More

House Financial Services Committee Postpones “Rent a Bank” Hearing, Reschedules Fintech Task Force Meeting

The US House Financial Services Committee, Chaired by Representative Maxine Waters, has adjusted this month’s schedule a bit. Crowdfund Insider published January’s schedule last week but on Friday several important changes were made. First, the Hearing for the Fintech Task Force has been moved up… Read More

SEC Seeking Default Ruling Against AWOL ICOBox Founder Nikolay Evdokimov

The US Securities and Exchange Commission (SEC) is seeking a default judgment against Nikolay Evdokimov and his Cayman Islands firm ICOBox. The agency is also seeking permanent enjoinment of Evdokimov and ICOBox, a $16,059,428.99 disgorgement and a civil penalty against Evdokimov of about $190 000… Read More

Reserve Bank of India to Allow Local Banks and Fintech Firms to Use Video Calls to Complete Know Your Customer Checks

Indian banking institutions and Fintech firms have reportedly been given the green light to use video calls, in order to carry out know-your-customer (KYC) compliance checks, after a recent ruling by the nation’s central bank. The updated rules and guidelines will allow regulated entities to… Read More

SEC: Invoices Show Telegram Sold Tokens Through Brokers After Initial Raise

In the SEC’s January 2nd letter requesting compulsion of bank records from private messaging app provider Telegram, the regulator claimed it had documents showing that Telegram, “paid commissions to purchasers who were buying Grams to resell to other investors…” Brokered sales, the SEC wrote, “render… Read More

Send this to a friend