The traditional ATM is a truly ubiquitous part of our culture. Although the first American ATM was not installed until the fall of 1969 in New York City, most Americans, regardless of geography, probably cannot imagine life without the ease and convenience they provide. And this story is now likely to be repeated with Bitcoin ATMs. Read More ›
Most businesses must deal with federal, state, and local laws and regulations from time to time. Operators of Bitcoin ATMs are no different. For such operators, the primary regulations arise out of the federal Bank Secrecy Act (the “BSA”), as discussed below, and the state-level money transmitter laws are discussed in another article. Read More ›
Depending on the state where the Bitcoin ATM operator sets up the business, the operator may – or may not – need to comply with that state’s laws, regulations and/or licensing. For operators, the primary state-level matters of concern are typically its state or states of operation’s money transmitter laws. Read More ›
As previously discussed, Bitcoin ATMs are a growing industry, offering consumers great flexibility in exchanging Bitcoin tokens for cash, or purchasing Bitcoin tokens for cash, via standalone kiosks. Many merchants are starting to get on-board with owning, or leasing space to, Bitcoin ATMs as a way to serve an expanding market. Read More ›
While recent announcements by Chinese and South Korean regulators may spark companies planning an initial token launch to reevaluate their strategy, these new regulatory actions likely are not the “beginning of the end” of quality projects in the digital token space. Read More ›
New Cybersecurity Regs Will Not be Limited to New York: Extra-Territorial Application for the Insurer and its 3rd Parties
August 28, 2017 marks the first of several rapidly approaching implementation deadlines for “covered entities” subject to the new cybersecurity regulations promulgated in March by the New York Department of Financial Services (“NYDFS”). With a few limited scope exemptions based on size, revenue, assets, and structure, 23 NYCRR Part 500 establishes minimum cybersecurity requirements for approximately 4,500 DFS regulated licensees, and the sweeping new rules will de facto extend to third-party service providers and authorized users beyond the Empire State’s borders. Read More ›
The first states to officially begin regulating blockchain technology and business did so in 2014, when a guidance document from the Texas Department of Banking excluding blockchain activity from the state’s money transmitter laws kicked off a chain of similar opinions in other jurisdictions. Since then, at least 26 states—ranging from Alaska to West Virginia—have either introduced or enacted legislation regulating blockchain in some manner. The past seven months have seen the marked growth of legislative activity in the blockchain space, and at least sixteen bills have been enacted or proposed so far this year.
 Texas Department of Banking, Supervisory Memorandum 1037, Regulatory Treatment of Virtual Currencies Under the Texas Money Services Act (April 3, 2014), available at http://www.dob.texas.gov/public/uploads/files/consumer-information/sm1037.pdf.
Lost in the headlines over the SEC’s recent pronouncements on cryptocurrency was important practical advice for both promoters of and participants in initial coin offerings (ICOs). Read More ›
FinCEN Cracks-Down on Yet Another Alleged Illegitimate Virtual Currency Exchange, Raising More Concerns for Legitimate Exchanges
The Financial Crimes Enforcement Network (FinCEN) takes first action against a foreign-located money service business
Yesterday’s flurry of releases from the U.S. Securities and Exchange Commission leaves open the question of whether any individual initial coin offering (ICO) represents the sale of securities under applicable U.S. law. Read More ›
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William T. Repasky practices with the Litigation Department at Frost Brown Todd. He focuses on lending and commercial services; banking litigation and financial institutions.