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Payment Processing Posts
SEC “Kiks” Another Goal In Ongoing Fight Against Cryptocurrencies
Oct 1, 2020
SEC “Kiks” Another Goal In Ongoing Fight Against Cryptocurrencies
In the latest blow to businesses seeking to offer digital tokens or cryptocurrencies to consumers, the United States District Court for the Southern District of New York ruled on Wednesday that Kik Interactive Inc.’s offering of its Kin digital token violated Section 5 of the federal Securities Act, granting summary judgment to the Securities and…
Civil or Criminal Liability: Charging A Payment Processing Case by Coin Toss?
Aug 17, 2020
Civil or Criminal Liability: Charging A Payment Processing Case by Coin Toss?
In the eyes of federal investigators, when is a payment processor considered a benevolent alternative to traditional banks, and when is it viewed as a shady facilitator of all things criminal? In other words, is the client another Paypal or Venmo, or are we looking at a potential WireCard AG prosecution? We have noticed in…
SEC’s Lawsuit Against Telegram Raises Questions About Cryptocurrency “Presales” Under Regulation D
Oct 17, 2019
SEC’s Lawsuit Against Telegram Raises Questions About Cryptocurrency “Presales” Under Regulation D
On October 11, 2019, the Securities and Exchange Commission (“SEC”) filed a lawsuit against Telegram Group, Inc. and TON Issuer, Inc. (“Telegram”), and simultaneously obtained a temporary restraining order preventing Telegram from issuing its “Gram” cryptocurrency, which had been scheduled for delivery on October 31, 2019. The SEC claimed that the sale of Grams amount…
SEC Says “Pocketful of Quarters’” Planned Token Is Not a “Pocketful of Securities”
Aug 1, 2019
SEC Says “Pocketful of Quarters’” Planned Token Is Not a “Pocketful of Securities”
On July 25, the Securities and Exchange Commission’s (SEC) Division of Corporation Finance issued a letter to Pocketful of Quarters, Inc. (PoQ), informing PoQ that it would not recommend enforcement action in regards to PoQ’s proposal to sell tokens (called Quarters) on its gaming platform. The SEC informed PoQ that based on PoQ’s description of…
INITIAL EXCHANGE OFFERING: THE NEW PARADIGM FOR CRYTPO CAPITAL?
Mar 18, 2019
INITIAL EXCHANGE OFFERING: THE NEW PARADIGM FOR CRYTPO CAPITAL?
Crypto exchange Bittrex made news this week when it announced its first initial exchange offering (IEO), which it was to host through its Malta-based affiliate Bittrex International. Bittrex planned to offer its registered members the opportunity to buy RAID’s XRD token. RAID is an international gaming data blockchain project, with the goal to create a…
UPDATE – NOT SO FAST INDEED: DISTRICT COURT BALKS AT SEC’S BLANKET CHARACTERIZATION OF TOKENS AS SECURITIES BUT THEN RECONSIDERS RULING
Feb 15, 2019
UPDATE – NOT SO FAST INDEED: DISTRICT COURT BALKS AT SEC’S BLANKET CHARACTERIZATION OF TOKENS AS SECURITIES BUT THEN RECONSIDERS RULING
An issue of major importance to cryptocurrency and digital token markets has been whether tokens were all to be considered securities under U.S. law. The SEC’s frequent admonishments that it would consider ICOs to be securities offerings has caused a dramatic slowdown in the US ICO market. In one of the first cases to test…
Not So Fast: District Court Balks at SEC’s Blanket Characterization of Tokens as Securities
Nov 28, 2018
Not So Fast: District Court Balks at SEC’s Blanket Characterization of Tokens as Securities
An issue of major importance to cryptocurrency and digital token markets has been whether tokens were all to be considered securities under U.S. law. The SEC’s frequent admonishments that it would consider ICOs to be securities offerings has caused a dramatic slowdown in the U.S. ICO market. In one of the first cases to test…
Cryptocurrency Exchanges Must Navigate An Outdated Regulation System
Jul 9, 2018
Cryptocurrency Exchanges Must Navigate An Outdated Regulation System
More consumers are adopting cryptocurrency than ever, but regulators are less enthusiastic. As a result, cryptocurrency exchanges spend unnecessary time and resources working to comply with outdated guidelines. Kraken, which oversees $150 million in daily cryptocurrency transactions, is the latest exchange to experience this problem. In an effort to bring itself into compliance with current…
Full Metal Cryptojacket
Feb 28, 2018
Full Metal Cryptojacket
In retrospect, it all seems so predictable. International capitalism creates virtual currencies. Banks are avoided. Millennials hail a new world order of anonymous or nearly untraceable market transactions. Numerous parties and exchanges hold on to large quantities of virtual currencies. But then the bad guys show up. And I’m not talking about the regulators. Last month, in what looks like the…
Coming Soon: Digital Asset Regulation
Feb 20, 2018
Coming Soon: Digital Asset Regulation
In January, Bitcoin dropped to approximately 50% of its 2017 peak price. Other digital currencies saw similar declines. Most market observers blamed these massive price fluctuations on related events: (i) widespread reports of fraud and price manipulation, and (ii) increasing prospects for the regulation of digital assets and currencies. Indeed, 2018 has brought us federal…
