K&L Gates | FinTech and Blockchain Law Watch
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Their fully integrated firm is poised to provide strategic and efficient legal solutions that are representative of the FinTech industry's constantly evolving platforms, services, and technologies. Our progressive approach to the FinTech space ensures that we are able to provide our clients with legal advice that is line with the cutting-edge advancements typically seen in the industry.
K&L Gates | FinTech and Blockchain Law Watch
1M ago
By: Jay Lee and Anson Chan
Earlier this year, the US Securities and Exchange Commission approved 11 spot Bitcoin ETFs. In Hong Kong, in view of rapid developments of virtual asset (VA) products and growing investment products offering exposure to VAs, the Securities and Futures Commission (SFC) issued a circular, on 22 December 2023, detailing requirements for investment funds with exposure of more than 10% of net asset value (NAV) to VA seeking authorization for public offerings in Hong Kong (Circular).
The Circular expands the range of “retail VA products” substantially and supersedes a circ ..read more
FinTech Law Watch
3M ago
By: Jay Lee and Beatrice Wun
On 2 November 2023, Hong Kong’s Securities and Futures Commission (SFC) issued a circular addressing the participation of intermediaries in tokenized securities-related activities (the Circular). The move was timely, as we are seeing a growing interest among financial institutions in tokenizing traditional financial instruments in global financial markets.
The Circular supersedes the SFC’s 2019 Statement on Security Token Offerings (2019 Statement) and clarifies the meaning of tokenized and digital securities.
Meaning of Tokenized Securities under the Circular
Toke ..read more
K&L Gates | FinTech and Blockchain Law Watch
4M ago
By: Jeremy McLaughlin and Josh Durham
The California Department of Financial Protection and Innovation (DFPI) is requesting comments on potential rules it will promulgate to implement the state’s recently-enacted Digital Financial Assets Law (DFAL), which establishes a formal licensing regime for digital asset service providers. Please review our client alert for a detailed analysis of the new law, which takes effect 1 July 2025.
DFPI is considering rules on the license application, licensure requirements, and stablecoin approval. In particular, DFPI is requesting comments on issues such as va ..read more
FinTech Law Watch
4M ago
By: Jay Lee and Natalie Chow
The Securities and Futures Commission of Hong Kong (SFC) will now allow tokenized authorized investment products to be offered to retail investors. Recognizing the growing interest in the tokenization of investment products in Hong Kong, on 2 November 2023, the SFC issued a circular outlining the public offering scheme and requirements of tokenized authorized investment products under the Securities and Futures Ordinance for primary dealings. However, secondary trading of such tokenized investment products is not allowed yet.
The public offering scheme is subject t ..read more
K&L Gates | FinTech and Blockchain Law Watch
4M ago
By: Nicolet-Serra and Josh Durham
Singapore has just become the 48th nation (joining the US) to begin implementing the international Crypto-Asset Reporting Framework (CARF), which is intended to standardize the automatic exchange of personal financial information between countries and to reduce tax evasion by those engaging in cryptocurrency transactions.
The Organization for Economic Cooperation and Development provided the framework for CARF in August 2022, which defined “Crypto-Assets” and key intermediaries and other service providers that will be subject to reporting. Under the fram ..read more
FinTech Law Watch
5M ago
By Jeremy McLaughlin, Andrew Hinkes, and Josh Durham
Yesterday the Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rulemaking (NPRM) that, according to the agency, aims to “crack down on [fintech] regulatory arbitrage by ensuring large technology firms and other nonbank payment providers are subjected to appropriate oversight.”
The proposed rule would subject large nonbank digital consumer payment companies to the CFPB’s supervisory oversight. Specifically, the new rule would define an additional market the CFPB will oversee: the “general-use digital consumer payment ap ..read more
K&L Gates | FinTech and Blockchain Law Watch
5M ago
By: Jay Lee and Beatrice Wun
Hong Kong Stock Exchange (HKEx) recently launched “HKEx Synapse” (Synapse), a new blockchain-based settlement platform to complement the existing post-trade infrastructure for Northbound Stock Connect. “Stock Connect” in Hong Kong refers to a market access program through which investors in Mainland China and Hong Kong can trade and settle shares listed on the other market via exchanges and clearing houses in the home market. “Northbound Stock Connect” refers to the market access program where investors in Hong Kong can have access to shares in Mainland China.
With ..read more
K&L Gates | FinTech and Blockchain Law Watch
5M ago
By Eden Rohrer, Aiden O’Leary, and Josh Durham
On 19 October 2023, New York Attorney General Letitia James filed a lawsuit against cryptocurrency companies Gemini Trust Company, LLC (Gemini), Genesis Global Capital, LLC (Genesis), Digital Currency Group, Inc. (DCG), and several of their affiliates and controlling persons, in relation to Gemini’s digital asset investment program called Gemini Earn (Earn). In addition to claims that Earn constituted the offering of an unregistered security, which we have seen recently in other SEC and state regulator enforcement actions, the lawsuit also claims ..read more
FinTech Law Watch
5M ago
By Daniel Knight and Kithmin Ranamukhaarachchi
Yesterday the Australian Federal Government released its proposal paper on regulating the crypto industry (Paper). The government proposes to regulate exchanges, custodians and other digital asset service providers within the scope the Australian Financial Services (AFS) licensing regime.
The AFS licensing regime is proposed, rather than a bespoke crypto licence (or other existing licensing frameworks, such as the Australian Markets Licence regime).
The Paper suggests that licensing would be tied to a range of “financialised f ..read more
FinTech Law Watch
5M ago
By Cliff Histed, Cheryl Isaac, Eden Rohrer, and Josh Durham
On 12 October, the Commodity Futures Trading Commission (CFTC) filed a complaint against Stephen Ehrlich, the former CEO of the now-defunct cryptocurrency platform, Voyager Digital (Voyager), in the US District Court for the Southern District of New York. In its 55-page complaint, the CFTC asserts both fraud and registration failures by Ehrlich in connection with the Voyager platform and Voyager’s operation of an unregistered commodity pool.
The CFTC alleges that Ehrlich acted fraudulently by soliciting participation in the Voyager pl ..read more