Blockchain and Financial Services Blog

Showing 15 posts in Laws & Regulations.

Ohio's Data Protection Act: An Opportunity for Financial Institutions That Operate in Ohio

Good news! The Ohio legislature has offered financial institutions some legal protections in the form of the Ohio Data Protection Act (the “Act”). However, you must be proactive. It will be good for your business and may help in future litigation. Read More ›

Cryptocurrency or a Security? Only the Jury Knows for Sure

As anyone launching an initial coin offering (ICO), token-generation event or whatever else they want to call it knows well—whether a token offering is a security or a cryptocurrency is a hot topic. The SEC seems to indicate many tokens are securities, while FinCEN says cryptocurrencies. Until recently, few courts have had the opportunity to weigh in on the matter. But on September 11, the United States District Court for the Eastern District of New York, in United States v. Zaslavskiy, issued a Memorandum & Order (the "Order") on the defendant’s motion to dismiss. Read More ›

Blockchain Update: SEC Order Interrupts the Munchee ICO

SEC issues cease-and-desist order two days into the Munchee ICO, a sign the Commission is inching toward a new regulatory framework for ICOs. Read More ›

Blockchain Policy Update: LabCFTC Releases “A CFTC Primer on Virtual Currencies”

The Commodity Futures Trade Commission’s (CFTC’s) recent publication of “A CFTC Primer on Virtual Currencies” indicates that cryptocurrency will remain in the CFTC’s crosshairs for the foreseeable future. Though the CFTC primer begins with a caveat—content therein should not be construed as an “official policy or position”—the document is valuable insofar as it defines virtual currencies (VCs), outlines their utilities and their potential for malfeasance. At the same time, the CFTC primer provides insight into the commission’s current thinking on cryptocurrency and may therefore portend the kind of regulatory measures and other exigencies VC developers and their counsel need to prepare for. Read More ›

A Regulatory Primer for Bitcoin ATM Operators – State Law & Regulations

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 ›

Legal Issues of Owning and Operating a Bitcoin ATM Business

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 ›

West Virginia Legislature Amends Consumer Credit and Protection Act

West Virginia Governor Jim Justice has signed two bills (SB 344 and SB 563) into law that make significant changes to the West Virginia Consumer Credit and Protection Act, (“WVCCPA”). Both bills will go into effect on July 4, 2017. Read More ›

New York’s DFS Narrows Proposed Cybersecurity Regulations

On September 13, 2016, the New York State Department of Financial Services (“NYDFS”) issued  proposed cybersecurity regulations (“Original Proposed Regulations”) that would impose new, stringent cybersecurity requirements on banks, money transmitters, insurance companies, and other financial service providers regulated by the NYDFS (collectively, “Regulated Institutions”). Read More ›

What Financial Institutions Need To Know About IRS Form 1042-S

IRS Form 1042-S is a tax form for foreign individuals reporting income from a United States based source.  Recent federal law requires that all United States financial institutions file a Form 1042-S for foreign customers earning interest on their United States accounts.  The filing of Form 1042-S by financial institutions is not discretionary, and the failure to tender the form when required may face a compliance penalty.  The purpose of the form is to report interest earned on the non-resident alien fiduciary or foreign corporation’s account with the financial institution.    Read More ›

New Savings Options Authorized for Retail Customers

Towards the end of 2014, two new national savings laws were signed by President Barack Obama.  The first is American Savings Act, H.R. 3374.  To encourage consumer savings, this Act permits financial institutions to offer prize-linked savings products.  Citing the need to improve the country’s saving rate by American households, and following the success the State of Michigan saw with its own similar program, the Act permits a saving promotion raffle to be offered by insured financial institutions, including federal savings and loan institutions.  A permitted savings promotion raffle is a contest in which the consideration for entry is obtained by the deposit of a specified amount of money into a savings account or other savings program offered by a financial institution. Read More ›

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Attorney Spotlight

Courtney Rogers Perrin practices in the Nashville office as a member of the Firm’s Electronic Payments and Blockchain practice groups. She assists clients with regulatory compliance, contract negotiations, acquisitions and fund formation relating to credit card processing and fintech enterprises, including smart contracts and virtual currency matters.

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