On March 30, 2019, the Cyberspace Administration of China (CAC) released the first list of 197 blockchain information service providers that successfully registered pursuant to the Administrative Regulations on Blockchain Information Services. The list includes well-known Chinese internet companies such as Baidu, Alibaba, Tencent and JD.com, financial institutions like Ping An, China Zheshang Bank and Webank, as well as other blockchain information service providers such as Wanxiang and Beijing Internet Court. There are no true…

U.S. Developments U.S. Federal Regulatory Developments SEC Staff Holds FinTech Forum to Discuss Blockchain Technology and Digital Assets On May 31, 2019, the staff of the U.S. Securities and Exchange Commission (“SEC”) held a FinTech Forum to discuss distributed ledger technology and digital assets.  It was hosted by the SEC’s Strategic Hub for Innovation and Financial Technology.  The FinTech Forum’s agenda and its speakers can be found here. Members of Congress Write a Letter…

U.S. Developments Regulatory Updates SEC Files Enforcement Action Against Alleged Fraudulent Cryptocurrency Pyramid Scheme On May 22, the Securities and Exchange Commission (“SEC”) filed a complaint in the U.S. District Court for the Central District of California against Daniel Pacheco, owner of two California-based companies known as IPro Solutions LLC and IPro Network LLC (collectively, “IPro”).  The SEC’s complaint alleges that IPro raised more than $26.5 million in investments via the offer and sale of…

U.S. Developments Regulatory Updates SEC Continues to Delay Decision on Bitwise ETF On May 14, 2019, the U.S. Securities and Exchange Commission (“SEC”) continued its delay on a decision regarding a bitcoin exchange-traded fund (“ETF”) application. A decision regarding the ETF application, filed by Bitwise Asset Management and the NYSE Arca exchange earlier this year, has been delayed several times by the SEC. The SEC is requesting public comment from interested parties on the proposal.…

U.S. Developments Regulatory Updates CFTC Publishes Enforcement Manual On May 8, 2019, the U.S. Commodity Futures Trading Commission’s (“CFTC”) Division of Enforcement (“DOE”) published its first public Enforcement Manual (the “Manual”). The Manual establishes general policies and procedures for the DOE’s work in investigating and prosecuting violations of the Commodity Exchange Act. Director of Enforcement James M. McDonald commented on the release at the 41st Annual Conference of the Future Industry Association’s Law & Compliance…

U.S. Developments Regulatory Updates SEC Suspends Trading for Crypto Exchange and Mining Company On April 29, 2019, the U.S. Securities and Exchange Commission (“SEC”) announced that it was suspending trading for Bitcoin Generation (“BTGN”), a cryptocurrency exchange and mining company, until 11:59 p.m. ET on May 10, 2019, due to concerns about the accuracy and adequacy of information in the marketplace.  Specifically, the SEC was concerned about “(1) BTGN’s public statements regarding the viability and valuation…

The Office of Foreign Assets Control (OFAC) administers and enforces U.S. economic sanctions programs in accordance with U.S. national security and foreign policy. OFAC had not previously published guidance addressing essential elements for an effective sanctions compliance program (SCP). It has now done so. Specifically, on May 2, 2019, OFAC published guidance entitled “A Framework for OFAC Compliance Commitments.” OFAC’s Framework clearly establishes the agency’s expectations regarding an effective SCP. Given the importance OFAC places…