New York AG Puts Crypto Exchanges in the Crosshairs
Following on the heels of the SEC’s announcement of subpoenas to crypto exchanges and token issuers, yesterday New York Attorney General Eric Schneiderman announced “the Virtual Markets Integrity Initiative,” which he described as “a fact-finding inquiry into the policies and practices of platforms used by consumers to trade virtual or ‘crypto’ currencies like bitcoin and… Read More
If ICOs are Securities: What Cryptocurrency Issuers, Exchanges and Gatekeepers Need to Know.
As predicted, the Securities and Exchange Commission (SEC) has taken additional steps to clamp down on the exploding ICO market: yesterday the Wall Street Journal reported the agency had issued “dozens of subpoenas and information requests to technology companies and advisors.” After repeated warnings from regulators like SEC Chairman Jay Clayton, the SEC is now sending… Read More
2018: The End of Cryptocurrencies?
Cryptocurrencies (e.g. Bitcoin) took the broader public by storm in 2017 and had a breakout year. There were outsized and even unprecedented returns, along with extreme volatility and even more extreme volatility. The question for 2018 is whether cryptocurrencies had their “fifteen minutes of fame” or they are here to stay? Blockchain technology (which is… Read More
The Risks of Cryptocurrency and How the Government Will Protect Consumers
Bitcoin and a host of cryptocurrencies have taken both Wall Street and Main Street by storm in 2017. The nearly continuous gains in the price of Bitcoin have spawned numerous imitators and led a number of companies to raise critical start-up funds by selling their own token/cryptocurrency in a process similar to an initial public… Read More
ICOs Facing an Uncertain Future in China and the U.S.
This week, in a joint statement issued by the People’s Bank of China, the securities and banking regulators, and other government agencies, the Chinese government declared that initial coin offerings (ICOs) constitute “illegal open financing behavior” and immediately froze all ICO activity. The joint statement explained that the tokens issued in ICOs do not have… Read More
Bitcoin Equal to Money According to District Court Ruling
Is it possible to commit money laundering with virtual currency? At least one federal judge thinks so. Last month, U.S. District Judge Katherine Forrest refused to dismiss a money laundering charge premised on the use of a Bitcoin-based payment system. She is the first federal judge to hold that the federal money laundering statute is… Read More
Bitcoin Goes Mainstream
As followers of trends in e-commerce, our firm takes a keen interest in new e-payment methods. Last year, we predicted the Bitcoin would emerge as an innovative mode of currency for online transactions. When Bitcoin – an alternative virtual currency – first appeared in the mainstream media, it was largely portrayed as a wonky, nerdy… Read More
The Bitcoin Bubble Hasn’t Burst Yet, But The First Signs Of Trouble Are Brewing
By: Karl Smith and Casselle Smith The value of Bitcoin, the hottest and most widely traded virtual currency, plunged a little over a week ago, after China’s central bank issued a statement that the government is banning financial institutions from trading in the virtual currency.The price of a single Bitcoinfell from roughly $1200 on December… Read More