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Latest from Blockchain Blog

January 18, 2021

On January 1, 2021, the United States enacted the National Defense Authorization Act for Fiscal Year 2021 (NDAA) after the US House of Representatives and US Senate voted to override a presidential veto of the law. Included within the NDAA are a significant number of provisions related to anti-money laundering (AML) and countering the financing of terrorism (CFT), including provisions reforming the Bank Secrecy Act (BSA), a collection of statutes underpinning most of the current…

Blockchain Blog

OFAC Announces First Ever Enforcement Action Targeting a Digital Asset Company

By Alan Cohn, Meredith Rathbone, Jack Hayes, Evan Abrams & Jack Ritossa

January 5, 2021

On December 30, 2020, the US Department of the Treasury’s Office of Foreign Assets control (OFAC) announced a $98,380 settlement with BitGo, Inc. (BitGo). This civil settlement, regarding apparent violations of multiple sanctions programs related to digital currency transactions, is the first published OFAC enforcement action against a business in the blockchain industry. BitGo, based in Palo Alto, California, is an “institutional digital asset custody, trading, and finance” company. The apparent sanctions violations relate to…

Blockchain Blog

Charitable Contributions of Cryptocurrency: Tax Benefits and Other Considerations for Donors and Charities

By Lisa Zarlenga, Elinor Ramey & John Cobb

December 29, 2020

As 2020 finally comes to a close, it is time to consider year-end tax planning. One bright spot this year has been the performance of cryptocurrencies. Bitcoin, in particular, is trading at or near all time highs, considerably above its previous peak at the end of 2017. Other cryptocurrencies, like Ether, have also had considerable returns this year. Taxpayers holding significantly appreciated cryptocurrency may be considering the best way to optimize their charitable giving. Below…

Blockchain Blog

FinCEN Invites Comments on Proposed Amendments to Funds Recordkeeping and Transfer Rules

By Jason Weinstein, Alan Cohn, Evan Abrams & Jack Ritossa

November 17, 2020

On October 23, 2020, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board published a joint notice of proposed rulemaking inviting comments on proposed modifications to regulations implementing the Bank Secrecy Act (BSA). First, the agencies propose to lower the monetary threshold contained in the so-called “recordkeeping rule” and “travel rule” pursuant to which financial institutions are required to collect and retain information on certain funds transfers and…

Blockchain Blog

OECD Releases Report on Tax Policy Approaches and Gaps in the Taxation of Virtual Currencies

By Lisa Zarlenga & John Cobb

October 13, 2020

The OECD released a report titled Taxing Virtual Currencies: An Overview of Tax Treatments and Emerging Tax Policy Issues on October 12. The report, which was prepared and endorsed by the 137 members of the OECD’s Inclusive Framework on Base Erosion and Profits Shifting, provides a comprehensive analysis of the approaches and policy gaps across the main types of taxes (i.e., income, consumption, and property taxes). The report addresses the following areas, across more than…

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FinCEN Seeks Comments on Effectiveness of AML Programs, Presenting Rare Opportunity for FinTech and Blockchain Companies

By Alan Cohn, Brian Egan & Evan Abrams

September 22, 2020

On September 16, 2020, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) published an advanced notice of proposed rulemaking (ANPRM) seeking comments on regulatory changes to enhance the effectiveness of anti-money laundering compliance programs of regulated financial institutions. As described in FinCEN’s press release, the ANPRM presents an opportunity for financial institutions to provide comments on “a wide range of questions pertaining to potential regulatory amendments under the Bank Secrecy Act…

Blockchain Blog

OCC Leans Forward on FinTech and Digital Assets

By Will Turner, Alan Cohn & Evan Abrams

August 10, 2020

As regulators from across the US government continue to grapple with the rapid expansion of financial technology (FinTech) and digital assets, the Office of the Comptroller of the Currency (OCC) has adopted a welcoming position toward such technology and taken three recent steps with the potential to significantly benefit industry. First, the OCC is planning to propose a new national bank charter for payments companies, including those dealing with digital assets, that may allow such…

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New York Publishes New Guidance and Proposed Changes to BitLicense on Five-Year Anniversary

By Alan Cohn & Evan Abrams

July 7, 2020

On June 24, the five-year anniversary of New York’s virtual currency licensing regime known as the BitLicense, the New York Department Financial Services (DFS) published new guidance and FAQs related to approval for use of specific currencies and the licensing process, as well as a proposed conditional licensing framework. The measures offer important insight for companies holding or considering applying for a BitLicense and represent the most significant changes and proposed changes since the regulation’s…

Blockchain Blog

Proposed SEC Safe Harbor Could Provide New Tokens With an Enforcement Grace Period Before Hitting Open Water

By Shawn Davisson

April 20, 2020

In a series of remarks over the past year, SEC Commissioner Hester Peirce laid the groundwork for a potential SEC safe harbor for developmental token offerings, which could provide a registration exemption for three years to give token networks a sufficient incubation period to achieve “maturity.” The theory behind the proposed safe harbor is that the current regulatory framework functions as a barrier to launching token networks because offerors fear they may be treated as…

Blockchain Blog

Secretary Mnuchin Indicates New Cryptocurrency Regulations are Coming

By Evan Abrams

March 10, 2020

In his testimony before the Senate Finance Committee, on February 12, Treasury Secretary Steven Mnuchin stated that the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) will soon release new regulations related to cryptocurrency. FinCEN is responsible for issuing and implementing anti-money laundering (AML) and counter-terrorist financing (CTF) regulations applicable to certain US financial institutions. According to Secretary Mnuchin: We’re spending a lot of time on the issue of cryptocurrencies and digital payment systems…

Blockchain Blog

Blog Authors

Ten Key Takeaways from the NDAA’s AML Reforms

OFAC Announces First Ever Enforcement Action Targeting a Digital Asset Company

Charitable Contributions of Cryptocurrency: Tax Benefits and Other Considerations for Donors and Charities

FinCEN Invites Comments on Proposed Amendments to Funds Recordkeeping and Transfer Rules

OECD Releases Report on Tax Policy Approaches and Gaps in the Taxation of Virtual Currencies

FinCEN Seeks Comments on Effectiveness of AML Programs, Presenting Rare Opportunity for FinTech and Blockchain Companies

OCC Leans Forward on FinTech and Digital Assets

New York Publishes New Guidance and Proposed Changes to BitLicense on Five-Year Anniversary

Proposed SEC Safe Harbor Could Provide New Tokens With an Enforcement Grace Period Before Hitting Open Water

Secretary Mnuchin Indicates New Cryptocurrency Regulations are Coming

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