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Category Archives: Cryptoassets

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Podcast: Breaking Down Crypto Derivatives

Latham derivatives and FinTech partner Yvette Valdez explores regulatory issues impacting cryptocurrency derivatives on the Fintech Beat podcast. By Yvette D. Valdez New York partner Yvette Valdez, a member of Latham & Watkins’ FinTech Industry Group, recently discussed timely issues at the intersection of cryptoassets and derivatives law on a new episode of Fintech Beat. … Continue Reading

Taking the Scarlet Out of the Letters I-C-O

SEC Commissioner Peirce has proposed a three-year safe harbor for qualifying token projects, but regulatory clarity remains elusive. By Stephen P. Wink, Carolina Bernal, Shaun Musuka, and Deric Behar SEC Commissioner Hester Peirce has been a perennial advocate of innovation in the financial services and digital asset space. Continuing that tradition, she unveiled a Token … Continue Reading

World Economic Forum Launches CBDC Policy-Maker Toolkit

CBDCs will have a profound effect on the financial markets, and policy-makers must thoroughly consider the complex legal and regulatory issues. By Stuart Davis, Andrew Moyle, and Simon Hawkins Latham & Watkins lawyers are pleased to have contributed to the World Economic Forum’s CBDC Policy-Maker Toolkit. This resource is designed to provide a high-level decision … Continue Reading

Digital Asset Regulation: Howey Evolves & The Pursuit of Sufficient Decentralization

In two recent articles, Latham & Watkins lawyers examine the SEC’s guidance on the application of securities regulations to digital assets and the questions that remain unanswered. By Stephen P. Wink, Witold Balaban, John J. Sikora, Miles P. Jennings, Emanuel V. Francone, Cameron R. Kates, and Shaun Musuka Digital Asset Regulation: Howey Evolves In this … Continue Reading

Crypto Coming of Age: UK Regulation Hits Cryptoasset Business

New regulatory requirements, including registration and customer disclosure requirements, apply to regulated and unregulated persons carrying on relevant cryptoasset business. By Stuart Davis and Sam Maxson On 20 December 2019, the UK government published the Money Laundering and Terrorist Financing Regulations (Amendment) Regulations 2019 (the Amending Regulations). The Amending Regulations update the Money Laundering, Terrorist … Continue Reading

A Tipping Point for the Regulation of Cryptoassets in the EU?

The EC consults on existing cryptoasset regulatory framework and considers a separate EU framework for cryptoassets outside the current scope.  By Stuart Davis On 19 December 2019, the European Commission (EC) launched a public consultation to review the suitability and effectiveness of the current EU regulatory framework applicable to cryptoassets. The consultation will examine cryptoassets … Continue Reading

Podcast: Macro and Regulatory Developments Impacting Stablecoins

Latham FinTech partners discuss the evolving stablecoin landscape on the New Territories Podcast. By Christian F. McDermott, Yvette D. Valdez, and Stephen P. Wink New York partners Yvette Valdez and Stephen Wink and London partner Christian McDermott recently discussed the evolving stablecoin landscape on new episodes of The Brooklyn Project’s New Territories Podcast. The partners, … Continue Reading

The Yellow Brick Road for Consumer Tokens: The Path to SEC and CFTC Compliance (an Update)

Latham & Watkins provides an in-depth look at the intersection of CFTC and SEC regulatory jurisdiction in the crypto context. By David L. Concannon, Yvette D. Valdez, and Stephen P. Wink, with Paul M. Dudek and Miles P. Jennings With the rapid growth in the development of blockchain technology, virtual currencies, and token sales (sometimes … Continue Reading

Hong Kong FinTech Week: Day 1 in Review

SFC outlines new regulatory framework for virtual asset trading platforms, HKMA highlights recent FinTech initiatives, and PBOC discusses China’s forthcoming central bank digital currency. By Simon Hawkins and Kenneth Y.F. Hui The fourth annual Hong Kong FinTech Week conference kicked off with a major announcement from Mr. Ashley Alder, Chief Executive Officer of the Securities … Continue Reading

The G7 Draws a Line in the Sand for Global Stablecoins

Global monetary authorities and financial regulators have responded forcefully to the advent of privately developed global stablecoins. By Todd Beauchamp, David L. Concannon, Stephen P. Wink, Simon Hawkins, Stuart Davis, and Deric Behar A new report highlights the risks of global stablecoins and enumerates the legal, regulatory, and oversight hurdles a global stablecoin must clear … Continue Reading

The Future Ain’t What It Used to Be: New Tax Guidance Issued for Cryptocurrencies

The IRS has published a Revenue Ruling and FAQs clarifying some long-standing virtual currency questions. By Brian C. McManus, Elena Romanova, Stephen P. Wink, Sam (Seung Hyun) Yang, and Deric Behar On October 9, 2019, the US Internal Revenue Service (IRS) issued its first guidance on the tax treatment of cryptocurrencies in at least five … Continue Reading

SEC’s Crypto Summer Continues

SEC issues cease-and-desist orders for unregistered token presales and anti-touting violations. By Stephen P. Wink, Cameron R. Kates, Shaun Musuka, and Deric Behar Not content to let the dog days of summer slip by, the US Securities and Exchange Commission (SEC) recently issued two cease-and-desist orders relating to the offer, sale, and marketing of cryptocurrencies. … Continue Reading

Cryptoasset Trading Platforms: A Regulatory Trip Around the World

Latham & Watkins lawyers provide an in-depth look at the regulation of cryptoasset trading platforms in key jurisdictions. By Todd Beauchamp, Nozomi Oda, Yvette D. Valdez, Stephen P. Wink, and Simon Hawkins Cryptoasset trading is a fast-growing part of the financial sector. Some countries have wholeheartedly embraced cryptoassets; others have been more reticent to permit … Continue Reading

Abu Dhabi Global Market Issues Updated Comprehensive Guidance on Cryptoasset Framework

By Brian Meenagh, and Khaled Alhuneidi. In June 2018, the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) unveiled a dedicated cryptoasset regulatory framework by way of various amendments to the FSRA’s core regulations – the Financial Services and Markets Regulation (FSMR) as well as supplementary guidance thereto. In May 2019, the FSRA … Continue Reading

Latest UK Developments on the Regulation of Cryptoassets

FCA finalises guidance on cryptoassets and consults on product intervention measures. By Stuart Davis and Charlotte Collins FCA guidance on the regulation of cryptoassets As previously reported in this blog, the FCA consulted on guidance on cryptoassets in January 2019. This guidance is designed to help market participants understand how to classify different types of … Continue Reading

Meet Me at the Arcade: SEC Provides No-Action Relief for Ethereum-Based Gaming Token

The SEC issues second no-action letter for a digital token, but will “utility” token offerings reach the next level? By Stephen P. Wink, Cameron R. Kates, Shaun Musuka, and Deric Behar Gamers, rejoice! In only its second no-action letter to date for digital tokens, the SEC cleared the way for Pocketful of Quarters, Inc. (PoQ) … Continue Reading

Investors Welcome ADGM’s Guidance on Dedicated Cryptoasset Framework

The Abu Dhabi Global Market’s Guidance clarifies and expands FSRA expectations for OCAB Framework license holders. By Brian A. Meenagh In June 2018, the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) unveiled a dedicated cryptoasset regulatory framework by way of various amendments to the FSRA’s core regulations — the Financial Services and … Continue Reading

Can Broker-Dealers HODL? SEC and FINRA Say Keep It Noncustodial for Now

The regulators attempt to clarify their position on the possible custody of digital assets by broker-dealers, but questions remain. By Stephen P. Wink, Cameron R. Kates, Shaun Musuka, and Deric Behar The SEC and FINRA recently released a joint staff statement (Joint Statement) addressing the custody of digital asset securities by broker-dealers. For some time, … Continue Reading

Stakeholders Welcome New FinCEN Regulatory Guidance for Convertible Virtual Currency

FinCEN’s guidance clarifies the applicability of the BSA to a variety of virtual currency businesses. By Todd Beauchamp, Charles Weinstein, Loyal T. Horsley, Cameron R. Kates, and Shaun Musuka On May 9, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued interpretive guidance expanding on previously issued guidance and rulings regarding the … Continue Reading

European Central Bank Crypto-Assets Task Force Releases Paper on Cryptocurrencies

The paper discusses supervision and regulatory issues of cryptocurrencies, and finds that a central bank digital currency in the EU is not (yet) warranted. By Max von Cube In May, the European Central Bank’s Crypto-Assets Task Force published a paper on cryptocurrencies such as Bitcoin, Ether, and Ripple (referred to as narrowly defined “crypto-assets”). The … Continue Reading

FinCEN Brings First Action Against a P2P Virtual Currency Exchanger

The enforcement action serves as a reminder that virtual currency exchangers, regardless of size, must comply with the BSA. By Todd Beauchamp and Charles Weinstein The US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) does not care if you are a multinational corporation or an individual operating out of your garage; regardless of size, … Continue Reading

US Digital Asset Bills: Will April Legislation Bring May Flowers?

Federal legislators introduce two bills in an attempt to provide the blockchain economy with regulatory certainty. By Stephen P. Wink, Morgan E. Brubaker, Cameron R. Kates, and Shaun Musuka US regulators and federal legislators may be heeding the calls of crypto-enthusiasts for legal clarity regarding the status of digital assets and cryptocurrencies (collectively, Tokens). Two … Continue Reading
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