Virtual Currency Blog
New York has announced a new proposal requiring all financial services companies, including virtual currency businesses, to establish and maintain a cybersecurity program to increase consumer protection. While virtual currency companies may face financial and infrastructure burdens to comply with these requirements if they want to operate in New York, the regulation should create long term cost-savings, increased consumer confidence, and enhanced security.
Earlier this month, a U.S. federal judge in New York ruled, on a pre-trial motion, that Bitcoins are “funds” under Section 1960, the federal law prohibiting unlicensed money transmitting businesses. This decision further muddles the legal landscape regarding whether companies that transact in Bitcoin are money transmission businesses and highlights the need for legislative action.
In Response to Widespread Fraud, Congress Looks to Incorporate Distributed Ledger Technology into VA Medical Scheduling
The U.S. House of Representatives passed the VA Accountability First and Appeals Modernization Act of 2016, which implements a distributed ledger-based scheduling system that would increase transparency and make accountable those employees who continue to engage in fraudulent scheduling practices.
A bipartisan virtual currency resolution, House Resolution 835 (H.R. 835), was passed on September 12, 2016. It represents one of the first federal legislative attempts in the U.S. to regulate this area of newly developing technology.
The continued existence of Ethereum Classic has caused members of the Ethereum community to call for the Ethereum Foundation to take action to protect its IP rights. The Foundation should not seek to do so, as it has reasonably chosen not to be antagonistic towards Ethereum Classic and, in any event, it does not possess strong claims against Ethereum Classic under U.S. copyright and trademark law.
The European Union passed a new regulation and is cracking down on multinational technology giants operating in Europe in order to protect the personal data of its citizens. Blockchains can assist the EU in this fight for personal data protection.
In a recent ruling concerning a class action that arose from the massive Mt. Gox fraud, a U.S. federal judge denied, in part, a motion to dismiss claims filed by Mizuho Bank, Ltd.
Venmo and other web-based social-finance apps are growing in popularity, but they generally have substantial limitations because of the internet's functionality. Blockchain technology removes these limitations, and will be at the forefront of transforming the way in which value is transferred between individuals throughout the world.
Iowa’s approach to creating an environment for attracting high density load companies to the state stands in stark contrast with Washington’s decision to raise electricity rates for them. Regulators should be mindful of balancing their short-term financial goals with the need to attract and maintain innovative businesses.