Polsinelli BitBlog | FinTech

The convergence of the financial services industry and transformative technologies, commonly known as FinTech, is reshaping the industry. Within this intersection of innovation, Polsinelli’s BitBlog serves a resource for individuals and firms in the developing FinTech industry. Our FinTech and Regulation attorneys provide readers with a broad range of content and a unique perspective on the global FinTech landscape. 

For more information visit Polsinelli's FinTech and Regulation practice page.

 

SEC Charges EtherDelta Founder With Operating an Unregistered Exchange

SEC Charges EtherDelta Founder With Operating an Unregistered Exchange

By: Robert W. Wenner

On November 11, 2018, the SEC charged EtherDelta, an online platform for secondary market trading of ERC20 tokens, with operating an unregistered national securities exchange. This order represents a significant step forward in the SEC’s enforcement efforts in the digital asset space as the agency’s first action against an entity operating as a securities exchange.

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Digital Assets and the Long-Arm of the Law

Digital Assets and the Long-Arm of the Law

By: Jason Nagi

A recent ruling from a federal district judge in the Southern District of New York, involving a trademark dispute between a digital asset offering and web-titan Alibaba, has caused heads throughout the FinTech world to turn.  In Alibaba Group Holding Ltd. v. Alibaba Foundation, the court exercised jurisdiction over a foreign entity, for selling something to an individual in New York.

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SEC Charges ICO Token Offering Platform as an Unregistered Broker-Dealer

SEC Charges ICO Token Offering Platform as an Unregistered Broker-Dealer

By: Peter F. Waltz and Richard B. Levin

On Sept. 11, 2018, the SEC filed an enforcement action against an online platform TokenLot that bought and sold digital assets and facilitated their sale alleging that TokenLot operated as an unregistered broker-dealer.  TokenLot described itself as an ICO superstore and operated a platform where retail investors could purchase digital tokens during and after an ICO. 

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SEC Charges Unlicensed Bitcoin-Funded Swap Dealer and CEO

SEC Charges Unlicensed Bitcoin-Funded Swap Dealer and CEO

By: Robert W. Wenner and Richard B. Levin

On November 1, the Securities and Exchange Commission filed charges against an international securities dealer and it’s CEO, based in Austria, for allegedly violating the federal securities laws in connection with security-based swaps funded with Bitcoin. The complaint filed in the U.S. District Court for the District of Columbia alleges that 1pool Ltd. a/k/a 1Broker allowed users of the platform to purchased contracts for difference (“CFDs”) in US equities by only creating a username and password and funding their 1Broker account with Bitcoin.

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SEC Launches New Strategic Hub for Innovation and Financial Technology

SEC Launches New Strategic Hub for Innovation and Financial Technology

By: Richard B. Levin, Peter F. Waltz and Robert W. Wenner

A great step by the SEC to help guide the industry and the public through the issues associated with the development of FinTech,” notes Richard Levin.

 The U.S. Securities and Exchange Commission today announced the launch of the agency's Strategic Hub for Innovation and Financial Technology (FinHub). 

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SEC Suspends Trading in Company Making False Cryptocurrency-Related Claims About SEC Regulation and Registration

 SEC Suspends Trading in Company Making False Cryptocurrency-Related Claims About SEC Regulation and Registration

By: Richard B. Levin, Peter F. Waltz and Robert W. Wenner

“The SEC is serious about digital asset companies not making false claims that their offerings are regulated or registered with the SEC,” notes Richard Levin.

The U.S. Securities and Exchange Commission has suspended the trading of securities of a American Retail Group, Inc., based on its statements about partnering with a claimed SEC-qualified custodian for use with cryptocurrency transactions and a purportedly registered public offering of preferred stock. 

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SEC Stops Fraudulent ICO That Falsely Claimed SEC Approval

SEC Stops Fraudulent ICO That Falsely Claimed SEC Approval

By: Richard B. Levin and Paul J. Roshka

The Securities and Exchange Commission (“SEC”) recently announced that it has obtained an emergency court order halting a planned initial coin offering (“ICO”), which falsely claimed was approved by the SEC. The order also halted ongoing pre-ICO sales by the company, Blockvest LLC and its founder, Reginald Buddy Ringgold, III.

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Court Denies Defendants’ Motion to Dismiss in Commodity Fraud Case Involving the Virtual Currency My Big Coin

Court Denies Defendants’ Motion to Dismiss in Commodity Fraud Case Involving the Virtual Currency My Big Coin

By: Richard B. Levin and Paul J. Roshka

On September 26, 2018, Senior Judge Rya W. Zobel of the U.S. District Court for the District of Massachusetts, entered an order holding that the Commodity Futures Trading Commission (CFTC) has the power to initiate enforcement actions involving virtual currencies and denying the defendants’ motion to dismiss the CFTC’s amended complaint. 

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