Politics, Legal & Regulation

Policy and regulations impacting innovations in Finance.

“J5” Joint Tax Authority Group Collaborating to Identify Cryptocurrency Tax Evaders

Tax officials from Australia, the US, Britain, the Netherlands, and Canada have formed a “J5” collaborative group now investigating 60 “lines of inquiry” regarding international tax evasion using cryptocurrencies, The Sydney Morning Herald (SMH) reports. “The J5 was formed a year ago because of growing concern… Read More

SEC Chairman Jay Clayton Discusses Cryptocurrencies and New Rules Covering Broker-Dealers, Won’t “Just Flip a Switch” on Crypto

The SEC has voted to implement a new rule compelling securities broker-dealers to act in clients’ best interests. SEC Chairperson Jay Clayton spoke about the new rule, as well as the SEC’s treatment of cryptocurrencies, in a televised interview for CNBC’s Squawk Box program June 6th. … Read More

EU Asks Malta to Boost Policing, Anti-Corruption and Tax Measures as Local Cryptocurrency and Gaming Industries Boom

In its latest “country-specific recommendations,” the EU has advised officials in Malta to enhance oversight of the country’s booming cryptocurrency and gaming sectors, to boost rules and address understaffing in the country’s Economic Crimes Unit, and to act against “aggressive tax planning” (evasion) executed by individuals… Read More

Chainalysis Partners with Lendingblock on AML/KYC in Advance of FATF Guidance

Crypto forensics firm Chainalysis has partnered with Lendingblock, the institutional lending exchange for digital assets. Chainalysis will provide AML/KYC technology to Lendingblock. Lendingblock allows hedge funds, exchanges, asset managers, etc. to find liquidity and facilitate strategies, in the digital asset sector. Lendingblock is regulated by… Read More

Exit Scam: Polish Coinroom Exchange Goes Dark, Funds Gone

Operators of Coinroom, a Polish cryptocurrency trading platform registered in 2016, have shut down the platform suddenly and disappeared with client funds, Polish business media site Money reports. At least 50 people on an online forum have claimed they lost between 300 and 60,000 “zlotys”… Read More

SEC Hits Blockchain Company Longfin with Additional Fraud Charges Related to Reg A+ Offering, Longfin CEO Hit with Criminal Charges

The Securities and Exchange Commission (SEC) has added new fraud charges against Longfin Corp. and its CEO for falsifying the company’s revenue. Longfin’s former consultant Andy Altahawi was also included in the action for “fraudulently securing the company’s listing on Nasdaq.” In April of 2018,… Read More

Coinbase, Circle Disappear from DefendCrypto List of Supporters

In the wake of the Security and Exchange Commission’s (SEC) enforcement action against Kik and the Kin initial coin offering (ICO), it appears that Coinbase’s name, as well as Circle’s, has been scrubbed from the list of supporters on the DefendCrypto website. DefendCrypto was concocted… Read More

Alternative & Direct Investment Securities Association Applauds Regulation Best Interest

Alternative & Direct Investment Securities Association (ADISA), a trade association for the retail alternative investment space, has commented on the Securities & Exchange Commission’s (SEC) vote to approve the final version of Regulation Best Interest. Under Regulation Best Interest, broker-dealers will be required to act… Read More

Brexit Hedge: FCA Solidifies Relationship with Dutch AFM as Financial Firms Look for EU Bridge

The Financial Conduct Authority (FCA) and the Dutch Authority for the Financial Markets (AFM) have signed a formal agreement to work more closely together as financial services firms look to maintain a foothold in continental Europe. The FCA states that since the UK announced its… Read More

Kik is the First Major ICO SEC Enforcement Action: “The First Shoe Has Finally Dropped.”

Kik’s Hail Mary Pass. As Crowdfund Insider reported earlier today, the Securities and Exchange Commission (SEC) has publicly revealed the allegations against Kik and the issuance of the Kin tokens. In 2017, Kik completed an initial coin offering (ICO) that raised a whopping $100 million… Read More

How Do You Account for That? The IFRS to Address Accounting for Cryptocurrency in Meeting Next Week

The IFRS (International Financial Reporting Standards Foundation) has been ruminating on the challenges of accounting for cryptocurrency for some time now. Next week (June 11-12), the IFRS Interpretations Committee will be holding a meeting in London with crypto on the agenda listed as one of… Read More

FBI Seeking Information from Investors Harmed in Collapse of QuadrigaCX

The US Federal Bureau of Investigation (FBI) is seeking information from investors who lost money when the Canadian cryptocurrency trading platform QuadrigaCX fell apart late last year. Individuals with questions or concerns about the failed exchange or who believe they were a victim in the… Read More

SEC Goes Public with Kik – Kin ICO Lawsuit Alleging Sale of Unregistered Securities

The Securities and Exchange Commission (SEC) has publicly announced its lawsuit against Kik Interactive for conducting an illegal $100 million securities offering of “Kin” digital tokens in an initial coin offering (ICO). The legal action should come as no surprise to industry followers as Kik… Read More

Julia Groves: Pleased with the FCA’s Updated Rules for Loans and Investment-based Crowdfunding

Julia Groves, Partner and Head of Digital at investment platform, Downing LLP and long-time UK Crowdfunding Association Director, issued a statement on updated rules for loan and investment-based crowdfunding revealed by the UK Financial Conduct Authority (FCA) today. Groves was complimentary of the new rules… Read More

The Financial Conduct Authority Updates Rules for Peer to Peer Lending, Boosts Investor Protection Including Cap on Retail Investors

The UK Financial Conduct Authority (FCA) has published a long-anticipated update to crowdfunding rules. More specifically, the FCA has “enhanced” aspects of investor protection for investors participating in peer to peer lending (P2P). Rules for investment crowdfunding, on the other hand, came out largely unchanged…. Read More

Heard on F Street: SEC Fintech Forum Engages with Crypto Industry to Discuss Digital Asset Regulation

Last Friday, the Securities and Exchange Commission (SEC) held its first Fintech Forum in years. The topic of discussion was the regulation of digital assets and distributed ledger technology (DLT). The interaction between presenters and SEC staff provided a glimpse into the progress and struggle… Read More

Outgoing CFTC Chairman Giancarlo: Regulation of Futures and Blockchain Should Be Largely Led by Markets

In a speech delivered to delegates of the Commissione Nazionale per le Societa e la Borsa (CONSOB- Italy’s securities regulator), CFTC Chairman J. Christopher Giancarlo highlighted his organization’s commitment to regulating commodities markets, including the cryptocurrency sector, in a manner that gives room for innovation. He… Read More

P2P Lender Lendy Goes Bust

Peer to peer lender Lendy is no more. On May 24, the online lender went into administration. According to the Lendy website: The administrators are working closely with the FCA who consented to their appointment over the Companies. This website will be used to provide… Read More

Boston Security Token Exchange: tZero Partner BOX Exchange Files Proposed Rule Change as it Pushes to Trade Digital Assets

Last week, the BOX Exchange filed a proposed rule change with the Securities and Exchange Commission (SEC). BOX has partnered with tZero to trade digital assets, or security tokens, in a new entity called the Boston Security Token Exchange (BSTX). The filing is over 400… Read More

A Problem with Crypto-Assets that are Securities: They Can be Plastic in Nature

Last week, Crowdfund Insider reported on the International Organization of Securities Commissions (IOSCO) consultation pertaining to “crypto asset trading platforms” or “CTPs.” As part of the consultation, IOSCO presented a series of issues and risks affiliated with digital assets and the trading of these assets… Read More

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