Product innovation (including in pooled investment vehicles) is encouraged, but innovation must be consistent with the law. By Yvette D. Valdez, Douglas K. Yatter, J. Ashley Weeks, and Deric Behar The US Commodity Futures Trading Commission’s (CFTC’s) Division of Swap Dealer and Intermediary Oversight (DSIO) Director Joshua B. Sterling issued a statement on February 10, … Continue Reading
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
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
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
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
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
It was a year filled with tantalizing tidbits and many loose ends. By Stephen P. Wink, Cameron R. Kates, Shaun Musuka, and Deric Behar 2019 marked the 10th year since blockchain technology was released into the wild by its still unknown inventor, Satoshi Nakamoto, who mined the first bitcoin block in January 2009. In the … Continue Reading
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
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
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
HMRC confirms that cryptoassets are not considered to be money or currency for tax purposes. By Karl Mah and Amy Watkins On 1 November 2019, HM Revenue & Customs (HMRC) issued a policy paper on the taxation of cryptoassets for businesses and companies. This follows guidance issued by HMRC in December 2018 for individuals holding … Continue Reading
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
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 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 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
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
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
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
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
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
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
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
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
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
