Politics, Legal & Regulation

March 30, 2022 @ 8:17 pm By JD Alois  |  

The Securities and Exchange Commission (SEC) has posted its annual list of examination priorities emanating from the SEC Division of Examinations. Last year’s list included Fintech and Innovation including Digital Assets, this year’s list includes Emerging Technologies and Crypto-Assets, so a slight change. To quote… Read More

March 30, 2022 @ 5:02 pm By JD Alois  |  

  SEC Commissioner Hester Peirce has posted a dissenting opinion regarding the rule proposal addressing SPACs. As was previously reported, the Securities and Exchange Commission has issued a 372-page proposal for new rules pertaining to Special Purpose Acquisition companies [SPACs]. SEC Chairman Gary Gensler described… Read More

March 30, 2022 @ 3:30 pm By JD Alois  |  

The Securities and Exchange Commission (SEC) has issued a statement proposing new rules impacting Special Purpose Acquisition companies or SPACs. The recent rise in the number of SPACs being utilized to bring a company public with less disclosure than a traditional initial public offering has… Read More

March 30, 2022 @ 8:29 am By JD Alois  |  

Yesterday, the Banca D’Italia or Bank of Italy – the country’s central bank – issued a statement banning N26 from accepting new customers. The central bank said that the decision follows an on-site inspection that “revealed significant shortcomings in respect of anti-money laundering.” The Bank… Read More

March 30, 2022 @ 8:10 am By Omar Faridi  |  

FTX Europe recently announced the appointment “per October 1st, 2022” of Dr. Marcel Lötscher, LL.M. MBA, to the newly created position, Head of Regulatory Strategy. Lötscher is being hired to continue FTX’s global expansion into Europe and the Middle East, “giving users in European Economic… Read More

March 29, 2022 @ 7:03 pm By JD Alois  |  

The Commodity Futures Trading Commission (CFTC) has announced a consent order against defendants Abner Alejandro Tinoco, and his company, Kikit & Mess Investments, LLC. The order was entered in the Western District of Texas in regards to an enforcement action. The order imposes injunctive relief, including… Read More

March 29, 2022 @ 6:23 pm By JD Alois  |  

The House Committee on Financial Services has distributed its calendar of hearings for the month of April.  While subject to change, there are several topics of interest that may involve the Fintech sector. On April 27, the Committee will engage with the Consumer Financial Protection… Read More

March 29, 2022 @ 9:48 am By JD Alois  |  

As was recently reported, the European Parliament is poised to vote on regulation pertaining to the Transfer of Funds that will impact crypto-assets. The quote the European Commission: “The anonymity associated with crypto assets, as well as their speed and global reach bring obvious risks… Read More

March 29, 2022 @ 7:18 am By Omar Faridi  |  

Steven L. Schwarcz, a Stanley A. Star Distinguished Professor of Law & Business at Duke University School of Law, notes that in the paper, titled Next-Generation Securitization: NFTs, Tokenization, and the Monetization of ‘Things’ (forthcoming in the Boston University Law Review), he has looked at the surge… Read More

March 28, 2022 @ 10:34 pm By Omar Faridi  |  

Last year, Aventus Group companies operating in Kazakhstan “issued EUR 41.6 million in loans – 3.4 times more than in 2020.” At the end of 2021, Aventus Group’s total portfolio in Kazakhstan “amounted to EUR 14.2 million (the total portfolio grew 2.8 times compared with… Read More

March 28, 2022 @ 4:29 pm By JD Alois  |  

Senate Finance Committee Chairman Ron Wyden has issued a statement indicating he is investigating if crypto firms are using the Opportunity Zone program to “avoid taxes without significantly benefitting low-income communities.” Senator Wyden states that he has requested two crypto firms, Argo Blockchain (NASDAQ:ARBK) and… Read More

March 28, 2022 @ 12:01 pm By JD Alois  |  

The London-based law firm Norton Rose Fulbright is working to help craft regulations to enable securities crowdfunding in Armenia, according to a note from the firm. In partnership with the European Bank for Reconstruction and Development (EBRD) and the Central Bank of Armenia, Norton Rose… Read More

March 28, 2022 @ 10:42 am By JD Alois  |  

New rules in Europe designed to stymie illicit activity may go too far, according to Coinbase. New Transfer of Funds Regulation “would unleash an entire surveillance regime on exchanges,” explains the crypto exchange. In a blog post, Coinbase states that “bad facts, make bad law,”… Read More

March 27, 2022 @ 8:14 pm By JD Alois  |  

Last week, Chancellor of the Exchequer Rishi Sunak delivered the Spring Statement outlining the challenges facing the economy and at least some of the government’s plans to alleviate some of the pain. A combination of COVID and then Russia’s unprovoked invasion of Ukraine has helped… Read More

March 26, 2022 @ 3:48 pm By JD Alois  |  

The Financial Technology Association (FTA) has submitted a comment letter in response to the Consumer Financial Protection Bureau’s (CFPB) review into Buy Now Pay Later (BNPL) platforms. The FTA represents several BNPL providers including Afterpay, Figure, Klarna, Sezzle, and Zip. Last  December several Democrat Senators… Read More

March 25, 2022 @ 12:14 pm By Omar Faridi  |  

On 22 March 2022, the Central Bank of Ireland  “reprimanded” and fined BNY Mellon Fund Services (Ireland) DAC €10,780,000 pursuant to its Administrative Sanctions Procedure (the ASP) for 16 regulatory breaches “relating to the outsourcing of fund administration activities.” The 16 breaches “arose because of… Read More

March 25, 2022 @ 11:34 am By JD Alois  |  

The Bank of England has enlisted the Massachusetts Institute of Technology (MIT) to engage in a project to review the potential of a digital pound or central bank digital currency (CBDC). The collaboration between the Bank and the MIT Media Lab’s Digital Currency Initiative (DCI)… Read More

March 25, 2022 @ 9:47 am By JD Alois  |  

  The UK Competition and Markets Authority (CMA) has issued a statement outlining its recommendations regarding the pursuit of Open Banking. The statement follows a consultation that was initiated in the spring of 2021. The CMA said its recommendations will guide a future entity that… Read More

March 25, 2022 @ 8:58 am By Tony Zerucha  |  

The United Kingdom’s Financial Conduct Authority (FCA) this week again warned consumers about some of the risks it sees associated with cryptocurrencies. While acknowledging benefits cryptoassets bring, such as the abilities to reduce costs and increase efficiencies, the FCA said they also present risks to… Read More

March 24, 2022 @ 6:19 pm By JD Alois  |  

Last month, the SEC Small Business Capital Formation Advisory Committee held a virtual meeting to discuss the definition of an Accredited Investor. For anyone viewing the meeting, it was clear that Committee members would like to make it easier for individuals to qualify as Accredited,… Read More