Blockchain & Cryptocurrency
A blockchain is a digitized and decentralized public ledger technology for cryptocurrency transactions, including those involving Bitcoin. A cryptocurrency is a digital or virtual currency that utilizes encryption techniques to secure transactions. As the primary federal agency for protecting consumers and promoting competition, blockchain presents a number of concerns for the FTC given the digital technology’s use by those acting unlawfully. FTC cases that involve virtual markets have now joined those involving traditional ones.
Hinch Newman Quoted by Bloomberg on Crypto Exchanges
FTC compliance and defense attorney Richard Newman was recently quoted by Bloomberg News in an article entitled “Crypto Exchanges Step Up Customer Bounties as Volume Falls.” The article discusses the cryptocurrency exchange operational, legal and regulatory related issues. “Crypto referral programs are potentially lawful if, without limitation, there are truthful and accurate disclosures, compensation is…
Read Article...Court Rules Virtual Currencies Can Be Regulated as Commodities
In January 2018, the Commodity Future Trading Commission initiated legal action against My Big Coin Pay, Inc. MGC is the creator of the My Big Coin virtual currency. The CFTC alleged that MBC engaged in fraudulent virtual currency practices by making a number of false claims in violation of, without limitation, the Commodity Exchange Act.…
Read Article...NY DFS Issues Another BitLicense
Recent reports are that the New York State Department of Financial Services issued a BitLicense to Xapo, Inc. and authorized Paxos Trust Company LLC to offer exchange and custody services for emerging cryptocurrencies on its virtual currency exchange. The press release can be seen, here. DFS is now reporting that, subject to ongoing supervision, it…
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