On Wednesday, April 10, the Securities Exchange Commission (SEC) issued a Wells Notice to Uniswap Labs (Uniswap), the creator of the world’s largest decentralized cryptocurrency exchange. Before digging into why the SEC issued a Wells Notice to the U.S.-based software company, it’s important to understand what a Wells Notice is. What is a Wells Notice?…
INTRODUCTION On March 26, 2024, the Commodity Futures Trading Commission (CFTC), brought a civil enforcement action in the U.S. District Court for the Southern District of New York against the group of entities it argues collectively operate as the centralized digital asset exchange KuCoin. The CFTC claims that KuCoin violated the Commodity Exchange Act (CEA)…
A recent settlement between Van Eck Associates Corporation (Van Eck) and the Securities and Exchange Commission (SEC) once again underscores the Commission’s focus on transparency in the securities markets. Van Eck agreed to pay a $1.75 million civil penalty to settle charges that it failed to disclose a social media influencer’s role in the promotion…
Table of Contents Introduction to FinCEN and The BSA If you’re a U.S. business dealing with cryptocurrencies on a frequent basis, you’re most likely familiar with the legal concepts “money transmitter” and “money service business” (MSB). If not, you’re potentially opening yourself up to a world of hurt by failing to comply with federal and…
Table of Contents The 2019 Guidance As the cryptocurrency landscape proceeds to blossom, regulatory bodies like the Financial Crimes Enforcement Network, or “FinCEN,” continue to play a crucial role in shaping the industry’s legal framework. For a brief discussion on the history of FinCEN’s entanglement with crypto, see our article Evolution of FinCEN’s Crypto Guidance. …
The Lawsuit Investors in the bankrupt cryptocurrency exchange Voyager Digital are suing the National Basketball Association (NBA), and New Jersey’s oldest law firm, McCarter & English. This emerging legal battle illustrates how even some of the largest and most reputable brands and companies can quickly become ensnared in controversy in an industry marred by a…
Alphabet Soup For over a decade, cryptocurrency has captured the imagination of investors, entrepreneurs, and technologists alike, presenting new opportunities and challenges in the world of finance. And if the financial world has taught us anything, it’s that where consumer interest journeys, regulators are quick to follow. The cryptocurrency craze is no exception. In a…
On November 21, 2023, the Commodity Futures Trading Commission (CFTC), the Department of Treasury’s Finance Crimes Enforcement Network (FinCEN), its Office of Foreign Assets Control (OFAC), and the Department of Justice (DOJ) all settled charges against Binance, the world’s largest cryptocurrency exchange, and its Chief Operating Officer, Changpeng Zhao (CZ). The settlement concerned a variety…
On Friday, June 2, Republican lawmakers Patrick McHenry, R-N.C., and Glen Thompson, R-Pa., introduced a discussion draft of long overdue legislation providing a statutory framework for digital asset regulation, attempting to provide greater clarity and consumer protection in the digital asset industry.
If you’re a U.S. business that deals with cryptocurrencies on a frequent basis, you’re most likely familiar with the legal concepts “money service business” (MSB) and “money transmitter”. If not, you’re potentially opening yourself up for a world of hurt by not complying with federal and state anti-money laundering (AML) regulations.