digital assets – FinTech and Blockchain Law Watch

The Long and Winding Road: Navigating Fintech and Crypto App Approvals by the Apple Store

Jun 20 2024

Much has been written about the effort it takes to have a new app approved by the Apple App Store. With good reason, Apple’s strict approval process ensures quality and maintains the standards of its ecosystem. As Apple itself reports, in 2023 it “rejected more than 1.7 million app submissions for failing to meet the App Store’s stringent standards for privacy, security, and content.”¹ An article from Decode about the top reasons for an Apple rejection² included the usual tech-related problems: The app is low quality; there are broken links; lots of bugs and crashes; etc.

AML Reforms Part 2: Digital Currency Service Providers

May 23 2024

By: Daniel Knight and Kithmin Ranamukhaarachchi

The Australian Attorney-General’s Department (Department) has released five consultation papers outlining proposals for extensive reforms to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime.

California is Seeking Industry Input on New Crypto Rules

Nov 21 2023

By: Jeremy McLaughlin and Josh Durham

The California Department of Financial Protection and Innovation (DFPI) is requesting comments on potential rules it will promulgate to implement the state’s recently-enacted Digital Financial Assets Law (DFAL), which establishes a formal licensing regime for digital asset service providers. Please review our client alert for a detailed analysis of the new law, which takes effect 1 July 2025.

CFPB Wants to Oversee Large Nonbank Digital Payment Providers

Nov 08 2023

By Jeremy McLaughlin, Andrew Hinkes, and Josh Durham

Yesterday the Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rulemaking (NPRM) that, according to the agency, aims to “crack down on [fintech] regulatory arbitrage by ensuring large technology firms and other nonbank payment providers are subjected to appropriate oversight.”

NY AG Sues Gemini, Genesis, and DCG for Fraud

Oct 20 2023

By Eden Rohrer, Aiden O’Leary, and Josh Durham

On 19 October 2023, New York Attorney General Letitia James filed a lawsuit against cryptocurrency companies Gemini Trust Company, LLC (Gemini), Genesis Global Capital, LLC (Genesis), Digital Currency Group, Inc. (DCG), and several of their affiliates and controlling persons, in relation to Gemini’s digital asset investment program called Gemini Earn (Earn). In addition to claims that Earn constituted the offering of an unregistered security, which we have seen recently in other SEC and state regulator enforcement actions, the lawsuit also claims that the defendants allegedly defrauded investors by concealing the program’s risks and misleading investors about the financial stability of Genesis.

Australia: Licensing Comes to the Crypto Industry

Oct 17 2023

By Daniel Knight and Kithmin Ranamukhaarachchi

Yesterday the Australian Federal Government released its proposal paper on regulating the crypto industry (Paper). The government proposes to regulate exchanges, custodians and other digital asset service providers within the scope the Australian Financial Services (AFS) licensing regime.

CFTC Files Complaint Against Voyager’s Former CEO Stephen Ehrlich Alleging Fraud and Registration Failures

Oct 16 2023

By Cliff Histed, Cheryl Isaac, Eden Rohrer, and Josh Durham

On 12 October, the Commodity Futures Trading Commission (CFTC) filed a complaint against Stephen Ehrlich, the former CEO of the now-defunct cryptocurrency platform, Voyager Digital (Voyager), in the US District Court for the Southern District of New York. In its 55-page complaint, the CFTC asserts both fraud and registration failures by Ehrlich in connection with the Voyager platform and Voyager’s operation of an unregistered commodity pool.

Crypto Platform Kraken Pays $30 Million and Ceases Staking Services to Settle SEC Charges

Feb 13 2023

By Drew Hinkes, Carly Howard, and Judie Rinearson

The Securities and Exchange Commission (SEC) announced a settlement with the digital assets/cryptocurrency exchange Kraken whereby Kraken agreed to cease offering or selling securities through its crypto asset staking services, and agreed to pay a penalty of $30 million (comprising disgorgement, prejudgment interest, and civil penalties).

California Legislators Continue To Assess How To Regulate Digital Assets

Aug 30 2022

By Jeremy McLaughlin and Josh Durham

For the fifth time since June 2022, California Senators have amended their proposed “Digital Financial Assets Law,” signaling a genuine desire to pass the bill as the Senate inches toward workable legislation.

SEC v. Wahi: An Enforcement Action That Could Impact the Broader Crypto / Digital Assets Industry

Jul 29 2022

By Andrew M. Hinkes and Josh Durham

The SEC has made a new crypto move. On July 21, the SEC filed a complaint in the U.S. District Court, Western District of WA against Wahi, a Coinbase employee, and two others alleging insider trading and charging them with securities fraud. The SEC alleged that nine of the crypto assets that Wahi and other defendants traded were “crypto asset securities”: AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX and KROM. This action is unique; unlike prior SEC enforcement actions brought against Poloniex, Coburn, TokenLot and others, which alleged the existence of digital asset securities being traded on various types of trading platforms, but failed to identify the specific alleged securities at issue or include any legal analysis of those alleged securities, here, the SEC “names names” and offers some analysis, but does not add the issuers of those 9 assets, or the platform upon which they are traded, as defendants.

Tag:digital assets