In light of recent news of an arrest for alleged fraudulent activity in an Initial Coin Offering (ICO), it's worth taking a step back and considering the legal status of ICOs as a method of raising money. First, a quick word on ICOs. One way for a company to raise funds is to issue stock that may […]
As of September 29, 2017, the SEC charged businessman Maksim Zaslavskiy and his two companies, REcoin Group Foundation and DRC (Diamond Reserve Club) World, with defrauding investors via a scheme involving two faux ICO’s (initial coin offerings) backed by nonexistent investments in real estate and diamonds. This event is particularly significant because it appears to […]
On September 27th Overstock.com’s blockchain-focused investment subsidiary Medici Ventures announced that its very own alternative trading system (ATS) will be open for business for any initial coin offering (ICO) in need of a new place to trade per the new SEC guidelines. This platform was initiated via a joint venture between Medici’s capital markets branch […]
The controversial birth of Bitcoin Cash on August 1 has created a fundamental crossroads for both the users of the popular cryptocurrency along with its underlying technology. What could amount to trillion dollar questions are now being asked about the future of Bitcoin that are as much philosophical in nature as they are practical in […]
On August 2nd, the Chicago Board Options Exchange (CBOE) launched itself into the Bitcoin market worth tens of billions of dollars via an announcement that left many of the cryptocurrency’s users jumping for joy. This announcement revealed that the CBOE has entered into an exclusive global license with Gemini Trust Company to use Gemini’s Bitcoin […]
The Jumpstart Our Business Startups Act (JOBS Act) of 2012 created the promise of widespread crowdfunding of new business ventures. While non-equity crowdfunding options like Kickstarter and Indiegogo had been around for years, companies could not entice investors with a share of their businesses without completing extensive disclosures, limiting their offers to accredited investors, or […]
Earlier this year, the SEC’s Office of Compliance Inspections and Examinations (OCIE) released its Examination Priorities for 2017. OCIE annually examines regulated entities[1] to ensure compliance, prevent fraud, identify risk, and inform policy. These priorities reflect the practices, products, and services that, per OCIE, present the greatest risks to investors and U.S. capital markets. Regulated […]
On February 13, 2017 the Commodity Futures Trading Commission delivered an early Valentine’s Day present to swap dealers and major swap participants by extending the deadline to comply with the variation margin requirements for un-cleared swaps stipulated by Commission Regulation § 23.153 from March 1, 2017 to September 1, 2017.[1] The CFTC’s No-Action Letter announcing […]
Earlier this year, FINRA published its Annual Regulatory and Examination Priorities Letter to provide the industry with insights into the areas FINRA plans to review in its 2017 exams and to assist financial firms with reviewing and strengthening their own supervisory and compliance systems. The letter states five priority areas the authority will focus on […]
Amendments to CME Rule 432 (General offenses) went into effect February 16, 2017. These amendments expand upon the protective measures previously found in CME Rule 432. The amended rule now extends liability for fraud and bad faith (432.B.1); manipulative devices, schemes, and artifices to defraud (432.H.); and delivery of false, misleading or inaccurate crop or […]