Judge Sends Owner of Crypto Trading Platform Bitfunder to 14 Months in Prison

Judge Sends Owner of Crypto Trading Platform Bitfunder to 14 Months in Prison

Recently, one cryptocurerncy scammer was sentenced to 14 months in prison and 3 years of supervised release. Jon Montroll who had been operating cryptocurrency related services is about to face 14 months in prison after having pleaded guilty to securities fraud and obstruction of justice, as reported by the US Justice Department. Montroll was operating two inter-linked crypto businesses since 2012 and lost his investors’ money due to major computer hack in his system which…

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Regulators SEC & FINRA Explain Crypto Custodian Regulation and Approval

Regulators SEC & FINRA Explain Crypto Custodian Regulation and Approval

The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have explained in a joint statement that there are a number of questions that need to be answered before crypto companies will be approved as broker-dealers. The statement issued on Monday covered a number of different factors that affect the approval process of a broker-dealer application by a company that deals in digital assets, including custody and whether the assets are…

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Kin (Parent of Kik App) Crowdfunds $5 Million in Crypto to Help its Fight Against the SEC

Kin (Parent of Kik App) Crowdfunds $5 Million in Crypto to Help its Fight Against the SEC

Kik, a Canada-based messaging app firm, has launched a crowdfunding campaign to raise $5 million in cryptocurrencies to help with its upcoming court battle with the U.S. Securities and Exchange Commission (SEC). Kin, the parent company of Kik, raised $100 million USD during the Kik messaging app ICO; the firm is now launching a Defend Crypto Fund to protect against a potential SEC enforcement due to that ICO. The crowdfund was announced Tuesday on the…

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Circle Bemoans the Lack of Regulatory Clarity Regarding Crypto Assets

Circle Bemoans the Lack of Regulatory Clarity Regarding Crypto Assets

Whether to consider cryptocurrency as a security or not has always been one of the most debatable questions among crypto enthusiasts, investors and of course lawmakers. Lawmakers haven’t established a concrete definition yet resulting in an unclear and uncertain environment for crypto assets. Recently, Circle, a prominent crypto company and financial service provider, has come forth and posted a blog post regarding the interpretation of the recent norms implemented by U.S. regulatory agencies including the…

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SEC Ends a $30M Cryptocurrency Ponzi Scheme Supposedly Backed by Diamonds

SEC Ends a $30M Cryptocurrency Ponzi Scheme Supposedly Backed by Diamonds

The U.S. Securities and Exchange Commission (SEC) has announced on May 21 that it has secured a court order from U.S. District Court for the Southern District of Florida to halt an ongoing diamond-backed crypto Ponzi scheme which has targeted more than 300 investors in the U.S. and Canada, and estimated to be worth around $30 million. South Florida-based Jose Angel Aman is reportedly the mastermind behind the cryptocurrency scheme and claimed to allegedly use…

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Decision on Bitwise Bitcoin ETF Approval Delayed by the SEC Yet Again

Decision on Bitwise Bitcoin ETF Approval Delayed by the SEC Yet Again

The U.S. Securities and Exchange Commission (SEC) has once again delayed the decision to approve or reject a Bitcoin exchange-traded fund (ETF) by 5 weeks. The decision to delay was announced in a document published by the SEC. The document states that the regulator would hold off on making a decision on the Bitwise ETF proposal filed with NYSE Arca. The document asked for interested parties to provide public comment in an effort to receive…

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Featured: The Legal Minefield of Stablecoins

Featured: The Legal Minefield of Stablecoins

Stablecoins are a relatively new form of cryptocurrency and are often regarded as a solution to the instability of other cryptocurrencies such as Bitcoin. Stablecoins such as Tether, TrueUSD, Basis, and Saga are backed by fiat currency like the dollar, euro, and others. Stabelcoins have their critics, but they were essentially born to solve some of the problems faced by cryptocurrencies – stability and usability are the major issues that stablecoins attempt to solve. Even…

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Libertarian Think Tank Publishes a Harsh Critique of the SEC’s Treatment of Crypto

Libertarian Think Tank Publishes a Harsh Critique of the SEC’s Treatment of Crypto

The United States Securities and Exchange Commission (SEC) has come under criticism for its constant efforts to control the crypto market by a Libertarian think tank called Competitive Enterprise Institute. In a report recently published by the CEI, John Berlau, a senior fellow at the think tank expressed his harsh views against the SEC on its approach to regulating cryptocurrencies. The SEC has long been contemplating whether or not cryptocurrencies fall under the securities law….

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SEC Commissioners Publish a New Framework to Ascertain If Digital Assets Are Securities

SEC Commissioners Publish a New Framework to Ascertain If Digital Assets Are Securities

Following the Howey Test that determines whether certain transactions qualify as ‘investment contracts,’ there’s new framework recently suggested by two SEC Commissioners and published on the SEC’s official website. The new “Framework for ‘Investment Contract’ Analysis of Digital Assets” will enable individuals and organization to understand whether the digital assets and related services they are offering could be considered as investment contracts or not. The public statement about the issue clarifies that the new framework…

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The Fall of the ICO Market: A Plunge of 80% in 2019

The Fall of the ICO Market: A Plunge of 80% in 2019

The crypto world provided many entrepreneurs a great opportunity to materialize their ideas by using funds raised during initial coin offerings (ICOs). Starting a new company with capital has never been this easy. ICOs started back in 2014; however, it wasn’t until the end of 2017 that this market had really become popular. During early 2018, we could see that huge chunk of all initiated ICOs were raising enough funds which allowed them to start…

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