Tagged: regulations

Danger: Crowdfunding on the Wrong Platform Could Force You to Go Public

Some equity crowdfunding platforms are putting startups at serious risk.  Working with a platform that doesn’t structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of equity crowdfunding is a… Read More

Crowdfunding is Now Regulated in Brazil

The Commissão de Valores Mobiláros (CVM) in Brazil has published their regulatory regime to legalize investment crowdfunding. The document outlining the rules is embedded below (in Portuguese). The Investment crowdfunding regulation (Regulation 588) creates a new exemption for issuers of securities to raise funding online…. Read More

Report: Analog Regulations Built for the Traditional Banking Space are not Conducive to Fostering Innovation in Financial Services

  The digitization of finance is upon us. Fintech is rapidly changing all aspects of the financial services sector but different countries are adapting at different paces – regulation is largely why. Jackson Mueller, writing for the Milken Institute, hosted several roundtables earlier this year… Read More

Dubai Regulations for Crowdfunding: Issuers May Raise Up To $5 Million

The Dubai Financial Services Authority (DFSA) announced the enactment of a regulatory regime designed to engender a robust crowdfunding ecosystem for the country. The new regulations are part of a strategy to foster an innovation driven economy. Empowering entrepreneurs and startups by providing the access… Read More

What’s Next For Token Sales & ICOs After the SEC’s Recent Warnings

  Disclaimer: Although I am a securities attorney, I am not your securities attorney, so the following is in no way legal advice. If you are thinking about doing an ICO or token sale, I highly recommend talking to and hiring your own attorney. If you’ve been… Read More

Dubai Announces Regulatory Framework for Crowdfunding

The Dubai Financial Services Authority (DFSA) has today launched a regulatory framework for loan and investment-based crowdfunding platforms. The DFSA noted this is the first such framework in the  Gulf Cooperation Council (GCC) member countries. The new crowdfunding regulatory approach is part of the DFSA’s… Read More

Here is Tim Draper’s Open Letter to the SEC Regarding ICO Regulation

Tim Draper, a well known Venture Capitalist who is very active in Fintech, posted an open letter last week addressed the Securities and Exchange Commission regarding the recent comments on regulating Initial Coin Offerings. The letter was published in conjunction of the launch of the… Read More

Credo ICO Pushes Forward as SEC Warns Sector of Possible Enforcement Actions: Stewart Dennis Responds to SEC Announcement

The Securities and Exchange Commission published a report this week that rattled the hot Initial Coin Offering (ICO) sector is still being ingested by both platforms and companies looking to offer bespoke tokens. But as the SEC fired shots across the bow of the ICO… Read More

Look in the Mirror: Why the Number of Public Companies & IPOs are in Decline

  The decline in the number of public companies in the United States and the decline in the number of initial public offerings (IPOs) that occur each year are widely decried. It is irony that many who bemoan these changes are the very persons who… Read More

CFTC Grants First Authorization to LedgerX to Operate as Clearing House for Digital Currency Derivatives

LedgerX, has received regulatory approval from the US Commodities and Futures Trading Commission (CFTC) to operate as a clearing platform for derivatives in contracts clearing in digital currencies such as Bitcoin. Under the order, LedgerX will be authorized to provide clearing services for fully-collateralized digital currency… Read More

Catching Up with Michael Koenitzer of Global Debt Registry: Shedding Light on Loan Validation, Blockchain, Regulations & Future of Fintech

Last month Michael Koenitzer joined Global Debt Registry (GDR) as its Director of Business Development in the new New York office.  Since joining the GDR team he has focused on building and supporting customer relationships with key investor accounts and senior lenders. Koenitzer joined GDR with… Read More

Commissioner Piwowar Shares Insight into Securities Rulemaking, Fintech & SEC Direction on Capital Formation

Commissioner Michael Piwowar, who was Acting Chair of the Securities and Exchange Commission (SEC) until the successful appointment of Jay Clayton, visited with David Burton of the Heritage Foundation earlier this week providing a unique glimpse into the world of the SEC. Burton, who is… Read More

CFPB Ruling on Arbitration May “Transfer Wealth from Consumers to Wealthy Attorneys”

The Consumer Financial Protection Bureau (CFPB) announced a new rule to ban financial companies from using mandatory arbitration clauses. The CFPB said these rules have denied people their day in court. Many consumer financial products like credit cards and bank accounts have arbitration clauses in… Read More

How to Blow Your Regulation Crowdfunding Offering: Advertising and Promoters

Regulation Crowdfunding (Reg CF), which allows for true equity crowdfunding by small businesses and start-ups, has been in effect for over a year now. The amount of capital raised since Reg CF was launched last year has been steadily increasing as well as the number… Read More

Japan Plans to Create Fintech Hub

It is fair to say that over the past couple years, Fintech has taken the financial industry by storm. Their new-age approach to classic finance has added value to both companies and consumers. Because of this, many countries have decided to ride this wave of… Read More

Financial Stability Board Issues Report on Fintech: “Regulators Need to Understand the Impact”

The Financial Stability Board (FSB) has weighed in on the burgeoning Fintech sector of finance. The FSB has been analyzing “financial stability implications” potentially created by Fintech innovation. The FSB says it is specifically seeking to identify “supervisory and regulatory issues that merit authorities’ attention”…. Read More

International Investors: Can US Crowdfunding Platforms Accept Foreign Money?

Some crowdfunding platforms are accepting money from international investors. First, to clarify, is is allowable under US regulations but there are caveats to the rules. In the US, there are three different securities exemptions where you can publicly promote your offerings online: Reg D (506c),… Read More

Minimizing Potential Litigation & Regulatory Risks for Crowdfunding Platforms

Crowdfunding regulations were enacted with the goal of providing small businesses access to capital without imposing arduous registration and disclosure burdens.[i]  In that regard, the regulations have shown significant promise. Commentators have rightfully highlighted the substantial benefits to both issuers and investors based on their… Read More

Dubai Financial Services Authority Creates Special License for Fintech to Foster Innovation

The Dubai Financial Services Authority (DFSA) is looking to streamline the process of financial innovation by creating a special license for Fintech firms called the “Innovation Testing License” or ITL.  The DFSE said the ITL signals the “next phase” in their regulatory roadmap to increase… Read More

Research on Risk Shows Crowdfunding Has Significant Fraud Immunity: Here’s Why

It may be counterintuitive but the research has been done and the results are now in – and it’s as we’ve been saying for almost five years. Fraud in crowdfunding is not just almost non-existent –  so much so as to be hard to measure,… Read More