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This year brought unprecedented focus on consumer privacy – the rollout of the European Union General Data Protection Regulation (GDPR), the Cambridge Analytica controversy and Congressional hearings, a GDPR-light law coming out of California, more and bigger security incidents, and multiple proposals for an omnibus federal data protection law. The Federal Trade Commission (FTC or Commission) under the Obama Administration was active in calling for, and advancing, greater privacy protection for consumers, as well as…
In this issue: • Satisfying Tax and Other Liabilities With CryptocurrencyNew SEC ICO Enforcement and Developments on Unregistered Securities, Fraud, Promotions and the Howey TestInternational Crypto Crime Developments, OFAC Lists Bitcoin Addresses, Cyberattacks and Fraud Schemes UncoveredCryptocurrencies Continue to Permeate Capital Markets as Blockchain Permeates Settlement SystemsBlockchain Enterprise Announcements in BaaS, Supply Chain, Voting, Smart Contracts Satisfying Tax and Other Liabilities With Cryptocurrency By: Roger M. Brown
The U.S. Securities and Exchange Commission (SEC) recently announced a consent order settling an enforcement action brought by the SEC against Voya Financial Advisors Inc. (VFA) in connection with a data security incident that occurred in 2016. VFA is a registered broker-dealer and investment adviser with the SEC. The order memorializes the SEC’s agreement to accept $1 million in settlement of the charges alleging that VFA violated both the SEC’s “Safeguards Rule” and “Identify Theft…
The Department of Justice recently released its comprehensive assessment of cyber threats in the United States, titled “Report of the Attorney General’s Cyber-Digital Task Force.” The Report is the result of the establishment of the Attorney General’s Cyber-Digital Task Force by the Department in February 2018. Attorney General Jeff Sessions directed the Task Force to answer two questions: How is the Department responding to cyber threats? How can federal law enforcement more effectively accomplish its…
Class Actions Finkly & Sons Co. Faces Illinois Biometric Information Privacy Act Class Action • A former employee of steelmaker A. Finkly & Sons Co. filed a putative class action against the company in Cook County, Illinois, for violations of the Illinois Biometric Information Privacy Act (BIPA). • The case alleges the company violated BIPA by inappropriately collecting biometric data in the form of handprints for a timekeeping program without obtaining prior consent of employees,…
Canada Canadian Banks Notify 90,000 Following Breach • Bank of Montreal and Canadian Imperial Bank of Commerce announced that they were contacted by hackers and informed that nearly 90,000 customers’ personal information was accessed. • The banks will notify customers of the breach and indicate they believe they have fixed the vulnerabilities that led to the breach. EU/GDPR Privacy Activist Accuses Tech Companies of Violating GDPR • Privacy activist Max Schrems recently filed complaints against…
On February 21, 2018, the U.S. Securities and Exchange Commission (“SEC”) issued cybersecurity disclosure guidance for public companies (“SEC Guidance”) that, according to SEC Chair Jay Clayton, “reinforces and expands” on the SEC Division of Corporation Finance’s prior guidance from 2011 (“Corp Fin Guidance” as we previously covered) regarding disclosure requirements under the federal securities laws and related policies and procedures. Chair Clayton indicated that “providing the Commission’s views…
On Jan. 18, 2018, the Federal Trade Commission (FTC) published its Annual Privacy and Data Security Update. The update is helpful to businesses in that it recaps the efforts and areas of involvement the FTC has targeted in the past year as well as guides data protection strategies for 2018. The report provides a detailed review of the FTC’s areas of enforcement and international privacy protection updates, as well as the FTC’s domestic educational and…
In a widely publicized decision, the Federal Communication Commission (FCC) voted on Dec. 14, 2017, to repeal the tenets of the Protecting and Promoting the Open Internet Order, or the Open Internet Order, of 2015. See Protecting and Promoting the Open Internet, Report and Order on Remand, 30 FCC Rcd. 5601 (2015). While many have heard of the political debate surrounding the anticipated overturn of the Open Internet Order, commonly referred to as net neutrality…