Posts Categorized: Cryptocurrencies

FinCEN Imposes Fine for Failure to Register as Money Services Business Under Bank Secrecy Act

On April 18, 2019, the Financial Crimes Enforcement Network (“FinCEN”) imposed a $35,350 civil money penalty on Eric Powers for failure to register as a Money Services Business under the Bank Secrecy Act.  Mr. Powers was a peer-to-peer exchanger of bitcoin, a digital currency, for nearly two years.  FinCEN has taken the position that such… Read more »

SEC Framework for Analysis of Digital Assets; No-Action Relief for Certain Tokens

On April 3, 2019, the Securities and Exchange Commission (the “SEC”) staff released a “Framework for ‘Investment Contract’ Analysis of Digital Assets” setting forth its current approach to determining when a digital asset is a security and when it is not.  The Framework does not add significantly to the SEC’s prior actions and statements in… Read more »

SEC Cease and Desist Against Alleged Unlicensed Cryptocurrency Exchange

On November 8, 2018, the Securities and Exchange Commission (the “SEC”) published a press release announcing that it had settled its first cease and desist enforcement action concerning a cryptocurrency trading platform, against Zachary Coburn, the founder of EtherDelta.  The SEC has alleged that EtherDelta was an unregistered national securities exchange in that it provided a… Read more »

SEC Acts Against Cryptocurrency Companies

On October 11, 2018, Securities and Exchange Commission (the “SEC”), the SEC issued a press release announcing that it had obtained an emergency court order to stop an Initial Coin Offering (an “ICO”) by Blockvest LLC and its founder, Reginald Buddy Ringgold, III. Among other things, the company claimed that the ICO had been approved by the… Read more »