The Commodity Futures Trade Commission’s (CFTC’s) recent publication of “A CFTC Primer on Virtual Currencies” indicates that cryptocurrency will remain in the CFTC’s crosshairs for the foreseeable future. Though the CFTC primer begins with a caveat—content therein should not be construed as an “official policy or position”—the document is valuable insofar as it defines virtual currencies (VCs), outlines their utilities and their potential for malfeasance. At the same time, the CFTC primer provides insight into the commission’s current thinking on cryptocurrency and may therefore portend the kind of regulatory measures and other exigencies VC developers and their counsel need to prepare for. Read More ›
On October 12, 2017, The West Virginia Supreme Court issued a decision in State of West Virginia ex rel. v. Copper Beech Townhome Communities Twenty-Six, LLC, No. 17-0228, holding that the West Virginia Consumer Credit Protection Act (“WVCCPA”) does not apply to relationships between a landlord and tenant under a lease for residential real property. In reaching its decision, the Court noted that “in the forty-three years since the [WV]CCPA was enacted, this case is the first occasion in which any party has asserted before this Court that the Act applies to and regulates the landlord-tenant relationship.” The Court reasoned: Read More ›
The traditional ATM is a truly ubiquitous part of our culture. Although the first American ATM was not installed until the fall of 1969 in New York City, most Americans, regardless of geography, probably cannot imagine life without the ease and convenience they provide. And this story is now likely to be repeated with Bitcoin ATMs. Read More ›
Most businesses must deal with federal, state, and local laws and regulations from time to time. Operators of Bitcoin ATMs are no different. For such operators, the primary regulations arise out of the federal Bank Secrecy Act (the “BSA”), as discussed below, and the state-level money transmitter laws are discussed in another article. Read More ›
Depending on the state where the Bitcoin ATM operator sets up the business, the operator may – or may not – need to comply with that state’s laws, regulations and/or licensing. For operators, the primary state-level matters of concern are typically its state or states of operation’s money transmitter laws. Read More ›
As previously discussed, Bitcoin ATMs are a growing industry, offering consumers great flexibility in exchanging Bitcoin tokens for cash, or purchasing Bitcoin tokens for cash, via standalone kiosks. Many merchants are starting to get on-board with owning, or leasing space to, Bitcoin ATMs as a way to serve an expanding market. Read More ›
While recent announcements by Chinese and South Korean regulators may spark companies planning an initial token launch to reevaluate their strategy, these new regulatory actions likely are not the “beginning of the end” of quality projects in the digital token space. Read More ›
New Cybersecurity Regs Will Not be Limited to New York: Extra-Territorial Application for the Insurer and its 3rd Parties
August 28, 2017 marks the first of several rapidly approaching implementation deadlines for “covered entities” subject to the new cybersecurity regulations promulgated in March by the New York Department of Financial Services (“NYDFS”). With a few limited scope exemptions based on size, revenue, assets, and structure, 23 NYCRR Part 500 establishes minimum cybersecurity requirements for approximately 4,500 DFS regulated licensees, and the sweeping new rules will de facto extend to third-party service providers and authorized users beyond the Empire State’s borders. Read More ›
The first states to officially begin regulating blockchain technology and business did so in 2014, when a guidance document from the Texas Department of Banking excluding blockchain activity from the state’s money transmitter laws kicked off a chain of similar opinions in other jurisdictions. Since then, at least 26 states—ranging from Alaska to West Virginia—have either introduced or enacted legislation regulating blockchain in some manner. The past seven months have seen the marked growth of legislative activity in the blockchain space, and at least sixteen bills have been enacted or proposed so far this year.
 Texas Department of Banking, Supervisory Memorandum 1037, Regulatory Treatment of Virtual Currencies Under the Texas Money Services Act (April 3, 2014), available at http://www.dob.texas.gov/public/uploads/files/consumer-information/sm1037.pdf.
Lost in the headlines over the SEC’s recent pronouncements on cryptocurrency was important practical advice for both promoters of and participants in initial coin offerings (ICOs). Read More ›
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Christopher C. Tieke is an associate in Frost Brown Todd's Louisville office, focusing his practice on business litigation. He graduated from the University of Cincinnati College of Law, with magna cum laude honors; served as an Associate Member of the University of Cincinnati Law Review; and participated in the Entrepreneurship and Community Development Clinic.