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How We Will Remember the Year of the Dog? ICO Market...

As the Year of the Earth Pig has come, it is time to look back at what happened during the previous year. Happy Chinese New Year! As the Year of the Yellow Mountain Dog has drawn to a close, it is time to look back at what happened. While there was a promising start in January 2018, when most altcoins were enjoying their all-time highs, the bear eventually took over, and the market delved into the so-called “Crypto Winter.” Nevertheless, there was good news, too: The United States regulators expressed their desire to stick to “positive regulation,” while big league investors poured some funds into a number of promising, compliant crypto projects (mostly stablecoins). Here is what was happening month-by-month, along with the main takeaways. January 2018Japanese crypto exchange Coincheck was hacked, overtaking the infamous 2014 Mt.Gox collapse — an industry-record-breaking $532 million worth of NEM tokens was stolen this time. Despite the amount of damage, Coincheck has managed to stead..

Blockchain Capital Leads Funding Round for Crypto Compliance Startup TRM

U.S.-based venture firm Blockchain Capital leads a $1.7 million seed round for blockchain compliance startup TRM. United States-based investment firm Blockchain Capital has led a seed funding round for blockchain compliance startup TRM, a press release from the firm reveals Jan. 31. TRM announced today that it had a closed a funding round totalling $1.7 million. Tapas Capital, Green D Ventures, The MBA Fund, and “strategic angel investors” also participated in the round. According to TRM, the company is going to spend the funds on scaling its engineering talent and expanding the capabilities of its platform. Based in San Francisco, the firm has developed a so-called token relationship management platform to help crypto businesses streamline their Anti-Money Laundering compliance. The platform reportedly offers due diligence solutions, transaction monitoring and customer relationship management. The firm is also developing tools that use machine learning to automatically trace suspicio..

Gemini Crypto Exchange Undergoes Security Compliance and Data Protection Audit

The Gemini cryptocurrency exchange has announced the completion of an SOC 2 security compliance review. Gemini crypto exchange, founded by brothers Cameron and Tyler Winklevoss, completed a SOC 2 Type 1 security compliance review, according to a post made on their Medium blog on Jan 29. An organization that undergoes a Service Organizational Control (SOC) 2 audit aims to ensure that it has met the service criteria set by the American Institute of Certified Public Accountants (AICPA). These criteria pertain to standards of confidentiality, security, privacy, processing integrity and availability. According to the announcement, Gemini is the first in the cryptocurrency industry to undergo such an audit. The audit was conducted by ‘Big Four’ auditing firm Deloitte, which reviewed Gemini’s exchange application, infrastructure, underlying customer database, and its cryptocurrency storage systems that hold the keys of Gemini’s online and offline wallets. Gemini also noted that, in addition..

Coinbase Exec Joins Stablecoin Issuer TrueUSD as Head of Compliance

A former senior employee at U.S. crypto exchange Coinbase has left the industry giant to join stablecoin issuer TrustToken as head of compliance. A former senior employee at United States crypto exchange Coinbase has left the industry giant to join stablecoin issuer TrustToken as head of compliance, according to the company’s official website Jan. 4. Vaishali Mehta, whose LinkedIn profile indicates she served just over a year as senior compliance manager at the major San Francisco-based exchange, reportedly joined TrustToken in December 2018. Trust Token is the issuer of TrueUSD (TUSD), which has been listed on top crypto exchange Binance as of last May. The listing makes it a relatively early entrant amid the increasing number of new stablecoins notionally pegged 1:1 to the United States dollar — all of which are vying to compete with stalwart market leader Tether (USDT). Mehta’s LinkedIn profile further details her background as head of BSA/AML (Bank Secrecy Act/anti-money launderin..

Its ICO Portfolio ‘Could’ See 25 Percent Refund Rates Over Non-Compliance,...

Securities law enforcement means the investor’s various ICO project could come in for penalties, Pantera Capital has warned. Blockchain and cryptocurrency-focused investment firm and hedge fund Pantera Capital has warned that a quarter of its ICO projects could be found to violate the United States’ securities laws. According to the company’s most recent newsletter cited by a Bloomberg article Dec. 13, the ongoing crackdown by U.S. regulators means many ICOs, which have already felt the pinch from declining markets, may have to repay investors. “While we believe the vast majority of the projects in our portfolio should not be affected, approximately 25 percent of our fund’s capital is invested in projects with liquid tokens that sold to U.S. investors without using regulation D or regulation S,” the publication quotes co-chief investment officers Dan Morehead and Joey Krug as saying. “If any of these projects are deemed to be securities, the U.S. Securities and Exchange Commission’s (..

UK Financial Conduct Authority Investigates ‘50’ Firms Over Cryptocurrency Non-Compliance

Twice the number of crypto-related businesses are getting scrutiny from the U.K. regulator now as compared to May. The U.K.’s financial regulator has doubled the number of cryptocurrency-related businesses it is inspecting over unlicensed operations, local daily news outlet The Telegraph reported Nov. 26. Responding to a Freedom of Information request by the publication, the Financial Conduct Authority (FCA) said it was currently eyeing 50 entities which it “suspected” were offering financial services without its permission. The number is more than twice that which the FCA reported in May this year, and comes at a time when the U.K. is seeking to adopt a more orderly approach to its domestic cryptocurrency industry. While not quoting the response itself, the Telegraph referenced an accountant who suggested the continued downturn in cryptocurrency prices was indirectly pressuring on the FCA. “The huge sums lost as a result of cryptocurrency prices falling this year will have triggered ..

Study: ‘Compliance Trilemma’ Limits Potential of ICOs

A recent study funded by the Canadian government has revealed that ICOs are facing regulatory compliance challenges that limit their potential. Initial coin offerings (ICOs) are facing a regulatory “compliance trilemma,” according to a recent study funded the government of Canada and the University of British Columbia (UBC). To prepare the report, the research team investigated the ICO space over the course of six months, focusing primarily on North America, but also delving into some other countries and jurisdictions. The team conducted 45 qualitative interviews with individuals in the ICO space, including representatives of the finance, law, and science sectors of the field. Per the study, ICO issuers face a “trilemma,” wherein they can only address two of three objectives at a time, those being “having a compliant offering,” “reaching a distributed pool of investors,” in a manner that is “cost-effective.” The researchers define compliance as following regulations in the home jurisd..
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