Michael Bacina’s Post

ASIC v BPS ("Qoin"): Positive for the crypto industry? BPS received less than stellar advice and documents from their lawyers; causing them to suffer from deficient intermediary authorisation arrangements - rather than any real attempt to evade the law or to operate in an unlicensed manner. I consider the Court's analysis of which components of a product actually constitute parts of a non-cash payment facility (narrow view) very positive for the crypto industry on the whole. ASIC argued that the blockchain network, the Qoin token, and the wallet each individually formed part of the NCPF but the Court disagreed - only designating the wallet which consumers actually interact with as the NCPF. A win for ASIC for sure, but it appears to be an administrative error type of case in relation to unlicensed conduct rather than any positive finding of crypto-assets being a financial product. https://lnkd.in/gaPG9USQ

Concerned about blockchain legal issues? Get a hold of the essential legal aspects and regulatory hurdles. Learn how to navigate compliance and mitigate risks in your projects. Ensure your initiatives are legally sound! #BlockchainLaw #RegulatoryCompliance https://buff.ly/3WnqMGb https://buff.ly/3zFKtQp

As Initial Coin Offerings (ICOs) become an increasingly popular funding method for blockchain projects, the need for securities compliance has become more crucial than ever. With heightened scrutiny from global regulators, understanding the legal landscape of ICOs is vital for success. Key Takeaways from Our Latest Article: - Token Classification: Properly classify your token using the Howey Test to determine if it’s a security. - Regulatory Framework: Understand the SEC’s role and the nuances of compliance in different jurisdictions. - Compliance Steps: Focus on regulatory filings, disclosure requirements, and robust investor protection measures. - Challenges: Stay ahead of regulatory changes and the complexities of cross-border compliance. For expert insights and strategies on ICO securities compliance, read the full article here: https://lnkd.in/g-rYCf7p Alternatively, you may read the article on our website: https://lnkd.in/gPdu2hY8 #ICO #Blockchain #SecuritiesCompliance #Regulations #InvestorProtection #LegalInsights #Lawyers #IBL #IndustriaBusinessLawyers #Crypto #Law #Legal #Compliance

🇺🇸 The U.S. Senate passed a bipartisan joint resolution (HJ Res. 109) to invalidate the SEC's accounting guidelines (SAB 121) on cryptocurrency custody obligations for strictly regulated financial companies like banks. The resolution passed with 60 votes in favor and 38 against. SAB 121 effectively prohibited these companies from holding cryptocurrency. The House of Representatives had already passed HJ Res. 109. With this Senate vote, both chambers approved reversing the SEC's SAB 121 guidance, in effect for two years. The resolution now goes to President Joe Biden, who previously announced plans to veto it when it passed the House. 🏛️🔄 #BitcoinWorld

🔊 The Jersey Financial Services Commission (JFSC) has issued guidance on the tokenization of real-world assets (#RWAs), emphasizing the global trend of converting physical and traditional financial assets into digital tokens on a blockchain. The guidance outlines issuer requirements such as: 💠 ongoing reporting 💠 independent verification of underlying assets 💠 the need for regulated custodians, 💠 the role of trust companies and directors in ensuring responsible and transparent tokenization practices. ✅ Ultimately, the JFSC's guidance aims to establish a regulatory framework that safeguards investor interests, upholds market integrity, and addresses risks related to financial crime. #tokenisation #Reg

In a speech to Blockchain APAC's Policy Week this week, ASIC Commissioner Alan Kirkland noted ASIC's increasing interest and focus on tokenisation of financial products and ‘real world’ assets. ASIC will be considering how tokenisation fits in the current regime and what, if anything, may be required by way of law reform or guidance. Mr Kirkland also offered ASIC's views on the upcoming regulatory regime for digital asset platforms and ASIC's recent enforcement actions against Block Earner and Finder Wallet. Read our full update below. #digitalassetplatforms #tokenisation #realworldassets

I’m very proud of my former colleagues (not to mention also my Dad and close friend) at Trachtenberg & Arena, LLP for successfully settling a complex cryptocurrency related class action lawsuit. As is described in the linked article from Law360, the case touched on several interesting issues that have come up as the law adapts to this revolutionary technology. 🔐  Are blockchain token offerings securities under the test set forth by the Supreme Court in the 1946 Howey case? 💻 If token offerings are securities, can those offerings be classified as domestic offerings only in so far as a blockchain relies on nodes located in the United States, even if the DAO is foreign? 😃 How should litigants and courts respond when electronic discovery software is not capable of capturing hyperlinked content sent over email and ephemera like emojis and stickers sent over apps like WeChat? Though the subject matter in this case was new and revolutionary, David Trachtenberg and Stephen Arena saved their client from a hair-raising level of liability, much the same way they have been doing for decades. Had the plaintiffs in this case obtained the judgement they were seeking, their client’s business would have cratered and the individuals involved would have been subject to massive personal exposure. Great work! https://lnkd.in/gJ_EBddE

Ripple’s class action lawsuit is advancing toward a final judgment, which could strengthen its position in its ongoing battle with the SEC. The lawsuit accuses Ripple of unlawful XRP sales spanning from 2017 to 2023, and a trial is scheduled for January 21, 2025. A favorable outcome in this class action case might bolster Ripple's defense against the SEC’s similar allegations, where the agency contends that XRP is an unregistered security. The impending trial is seen as pivotal, as its verdict could potentially influence the landscape of future regulatory actions and legal precedents involving cryptocurrency. If Ripple succeeds, it could have significant implications for the SEC’s approach toward digital asset regulation, potentially altering how other blockchain companies are scrutinized under U.S. securities law.

Kleos: The U.K. FCA reported that over 87% of crypto firms applying for registration under anti-money laundering rules in 2023-24 failed to meet approval, with only four of 35 applicants securing licenses. #fintech #crypto #license #regulatory #compliance #blockchain

Court relieves Block Earner from penalties; ASIC appeals decision The Federal Court has granted Block Earner relief from penalties related to breaches in financial services regulations. In response, ASIC has swiftly appealed the decision, arguing errors in the court's findings. Dive into the specifics of the case, its potential implications for crypto asset regulation and the grounds on which ASIC is contesting the ruling. Hall & Wilcox Blockchain Australia Selina Nutley Jonathan Taylor #fintech #crypto #blockchain https://lnkd.in/gjWvRxhz