On November 27, 2018, a California judge turned back the SEC’s request for an injunction against token company BlockVest, a company the U.S. Securities and Exchange Commission (SEC) is pursuing for allegedly conducting an unregistered securities offering. The judge, however, ruled that BlockVest’s token distribution, which was conducted via airdrop, was given freely and received without expectation for returns, so it didn’t constitute an investment contract.
Global private capital platform CapBridge Pte. Ltd. has garnered a license from the Monetary Authority of Singapore (MAS) to operate a security exchange known as 1exchange (also called 1X), which became operational on November 21, 2018. The exchange is designed to organize liquidity for private companies prior to exit events like an M&A (merger and acquisition) or an IPO (initial public offering).
In an interview with Bitcoin Magazine, CEO and founder of CapBridge Johnson Chen said that the process of obtaining the license took nearly two years.
On November 16, 2018, the U.S. Securities and Exchange Commission (SEC) issued a public statement clarifying its intent to regulate activities involving the issuance and trading of digital assets. The SEC’s Statement on Digital Asset Securities Issuance and Trading pronounces that three categories of financial services that utilize blockchain or other distributed ledger technologies (DLTs) are within the purview of the SEC and require registration with the SEC unless exempt.
It would appear more trouble may be brewing for the cryptocurrency industry. Although there is still no official industry regulation in the United States, dark clouds are gathering over EtherDelta. Zachary Coburn, the founder of the platform, is charged by the SEC for running an unregistered securities exchange.
ERC20 Tokens Are Always Risky
No one should be really surprised to learn the SEC doesn’t look favorable upon platforms trading ERC20 tokens.
The Securities and Futures Commission (SFC) of Hong Kong has claimed that it will include crypto funds under its regulatory umbrella.
The SFC issued a statement on November 1, 2018, laying out its new approach for regulating virtual assets in the future.
Aiming to create an SEC and FINRA-compliant U.S. exchange, blockchain-based crowdfunding firm seriesOne and crypto exchange Bithumb have formed a joint venture. According to an announcement made on November 1, 2018, officials behind the venture look to trade security tokens within a “compliant marketplace” and within the context of “other applicable regulatory approvals.”
For South Korea-based Bithumb, the venture provides the exchange with new expertise around U.
On February 16, 2018, the Swiss Financial Market Supervisory Authority FINMA put the world on notice by being the first major economy to set out clear guidelines on initial coin offerings (ICOs). In an announcement, the Swiss regulator addressed plans to apply financial market legislation to different tokens as well as lay out how ICO organizers can get proper input from FINMA when planning or launching their initial coin offerings.
Today, February 6, 2018, the prospects for coherent U.S. regulation on cryptocurrencies became a little more clear, as were the impasses that were frustrating progress on the issue. The Senate Committee on Banking, Housing and Urban Affairs (the “Committee”) heard joint testimony from the heads of both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The written testimony from Jay Clayton, chairman of the United States Securities and Exchange Commission (SEC), was released on February 5, 2018.
Broadridge Financial Solutions has completed a blockchain pilot with two French banks aimed at recording the details of bilteral repurchase, or repo, agreements.
The U.S.-based investor services firm worked with Natixis and Societe Generale on the pilot, which Broadridge said had demonstrated a distributed ledger's benefits for this kind of transaction. Specifically, those benefits include less manual intervention, reduced risk, greater transparency and faster processing, Broadridge said.
Rob Palatnick is a managing director and the chief technology officer at the Depository Trust and Clearing Corporation, one of the world’s largest financial market infrastructure providers.
In this opinion piece, looking ahead to next week's annual Sibos conference, Palatnick takes stock of blockchain technology's progress in transforming the plumbing of global markets, and explains why cooperation is critical for further advancement.
Marco Santori is a fintech lawyer based in New York City where he leads the blockchain technology team at Cooley LLP.
In this opinion piece, part of an ongoing series on the state of U.S. law as it applies to initial coin offerings and token sales, he explains the significance (and limitations) of the recently announced SAFT project.
Researchers at the European Central Bank (ECB) have published a new research report on the impact of distributed ledger technology (DLT) on the harmonization of post-trade settlement systems.
Released by the Advisory Group on Market Infrastructures for Securities and Collateral late last week, the 134-page report examines the technology's possible effect on a variety of services that touch the securities settlement process.
A group of German banks working with the R3 blockchain consortium has successfully replicated the sale of a €100,000 security on a distributed ledger platform.
Announced yesterday, Commerzbank, KfW Banking and MEAG all took part in the effort, designed to test an extension of R3's Corda platform. According to the companies involved, the trial served to show how a money market instrument, traded using distributed ledger technology (DLT), could take place with fewer intermediaries and in a shorter timeframe.