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US SEC Levies ‘First’ Civil Penalties Against Two ICOs for ‘Unregistered’...

In a self-described “first,” the U.S. SEC has imposed civil penalties against two ICOs solely over their failure to register their token sales. In a self-described “first,” the U.S. Securities and Exchange Commission (SEC) has imposed civil penalties against two Initial Coin Offerings (ICOs) solely over their failure to register their token sales, according to an official Nov. 16 press release. The SEC states it has reached settlements with two ICO companies, CarrierEQ Inc. (Airfox) and Paragon Coin Inc., both of whom reportedly conducted their token sales last year after the SEC had already “warned” that ICOs could be deemed securities offerings in its July 2017 DAO Report of Investigation. The nature of the settlements require both companies to “return funds to harmed investors, register the[ir] tokens as securities, file periodic reports with the Commission, and pay penalties” of $250,000 each. The enforcement action implies that both Airfox and Paragon’s tokens were judged to have..

Ohio Congressman Wants to Allow ICOs to ‘Sidestep’ Securities Laws

Warren Davidson, Republican congressman for the 8th district of the U.S. state of Ohio, plans to introduce a bill that would allow ICOs to “sidestep” securities laws. Ohio Congressman Warren Davidson plans to introduce a bill that would allow Initial Coin Offerings (ICOs) to “sidestep” U.S. securities laws, according to a report from Washington Examiner Nov. 13. Citing a spokesman for Davidson – Republican congressman for the 8th district of the state of Ohio – the publication reports that the prospective bill would propose that ICOs be treated as products rather than as securities at the federal and state level. The move would reportedly “eliminate” the U.S. Securities and Exchange Commission (SEC)’s oversight of the industry. The Washington Examiner notes that while the congressman aspires to seal bipartisan support for his bill, the deregulatory impulse of his project would unlikely win favor among the incoming Democratic majority in the U.S. House of Representatives. The report al..

Ripple Lawyers Try to Move Securities Lawsuit to Federal Court in...

Ripple’s legal team has filed to relocate its securities lawsuit to a national arena. Lawyers representing payment startup Ripple in its ongoing securities lawsuit are trying to move the case to a U.S. federal court in a show of what one legal commentator described as “tactical brilliance” Nov. 9. Court records confirm the application to move the case from state to federal level, which would allow Ripple to prove definitively that its XRP token is not a security under U.S. law, should it win. In the removal filing, litigation partner Peter Morrison said the case “meets each of (the) requirements” needed to allow the change to go ahead, legal industry magazine Law.com notes. The latest development is another step in the complex road to court for Ripple investors, four of whom originally brought separate claims against the company over its alleged securities law violations. The claimants all lost money from purchasing XRP at high prices earlier this year, but opted to sue to include all..

Swiss Crypto Bank Startup Expects to Receive Banking, Securities Dealer License...

After raising $103 million in September, a Swiss crypto bank startup expects a banking license from the Swiss financial regulator in the first half of 2019. The CEO of Swiss startup SEBA Crypto AG said in an interview that five “large asset managers” from both Germany and abroad have shown interest in their cryptocurrency bank, Swiss financial media outlet Cash reports Nov. 12. Back in September, the company had raised $103 million to set up a bank offering cryptocurrency-related services. At the time, CEO Guido Bühler had noted that the bank sees itself as a bridge between cryptocurrency assets and the traditional financial world. In the November interview, Bühler noted that SEBA Crypto AG expects to receive a banking and securities dealer license from Swiss financial market regulator FINMA in the first half of 2019. That license would allow the firm to conduct crypto trading and investments business for other banks and qualified investors. In September, SEBA had noted that it planne..

Ripple Makes Smart Move Regarding Securities Lawsuit In State Court 

A pending securities lawsuit regarding the regulatory status of the XRP token was requested to be removed last week by Ripple Labs legal team. The legal representatives of Ripple said that the class action suit against them was filed by a group of investors that have no geographical limitations. Therefore, the matter should not be addressed by a state court. XRP (XRP) Price Today – XRP / USD Name Price24H (%)$0.458824 -0.22% Flom litigation partner Peter Morrison, Skadden, Slate, Arps, and Meagher argued that the amount of the suit exceeded $5 million and was filed in agreement of over 100 people giving Ripple Labs the power to take the lawsuit to a federal court. The argument was as follows: “A putative class action can be removed from a state court to a federal district court if the following requirements are met: (1) the action is a class action lawsuit on behalf of one hundred members or more, (2) the plaintiff is not a citizen of the same state of the defendant. (3) the amount ..

Four Crypto Firms Ordered to Cease and Desist by Colorado Securities...

The Colorado Securities Commissioner has ordered four initial coin offerings to immediately cease and desist in connection with offering unregistered securities. Colorado State Securities Commissioner Gerald Rome has issued a cease and desist order to four Initial Coin Offerings (ICOs) for allegedly offering unregistered securities, according to an official notice published Nov. 8. The orders come as part of a state operation by the “ICO Task Force” within the Department of Regulatory Agencies (DORA), which in May of this year commenced investigations into potentially unlawful activity targeting cryptocurrency investors. With yesterday’s orders, DORA has now issued 12 cease and desist actions against ICOs. On Nov. 8, Rome signed four orders to Bitcoin Investments, Ltd. — which is also conducting business as DB Capital — PinkDate, Prisma, and Clear Shop Vision Ltd. Per the notice, Bitcoin Investments claims to be a blockchain investment firm with over $700 million assets under manageme..

US SEC Charges, Fines EtherDelta Founder with Operating Unregistered Securities Exchange

U.S. securities watchdog charges Zachary Coburn, founder of crypto trading platform EtherDelta, with operating an unregistered exchange. The U.S. Securities and Exchange Commission (SEC) has charged Zachary Coburn, the founder of crypto token trading platform EtherDelta, with operating an unregistered securities exchange, a press release by the SEC reveals Thursday, Nov. 8. EtherDelta, which served as a secondary marketplace for trading ERC20 tokens, allows its users to buy and sell digital assets by means of an order book and smart contracts based on the Ethereum blockchain. According to the SEC, over an 18-month operating period, EtherDelta's users placed more than 3.6 million orders for tokens, including ones that are considered securities by U.S. federal laws. The regulator notes that most of the orders were executed after the DAO report that SEC had released in June 2017. Under the current law, EtherDelta was obliged to register in U.S. or to apply for an exemption; however,..

Abu Dhabi Securities Exchange Issues Thought Paper on Crypto and Blockchain

The Abu Dhabi Securities Exchange has reportedly issued a thought paper on crypto and blockchain infrastructure for issuing digital assets. The Abu Dhabi Securities Exchange (ADX) has issued a thought paper on cryptocurrency and blockchain infrastructure for issuing digital assets, reports the Emirati government news agency WAM Nov. 6. The document was reportedly issued in collaboration with the Central Securities Depositories and under the auspices of the International Securities Service Association, ISSA. In publishing the paper, the ADX seeks to identify the necessary technical and operational criteria for issuing digital assets and supporting financial institutions in offering crypto assets. According to ADX CEO Rashed Al Blooshi, the exchange “continues its efforts to manage the transition from conventional assets to more encrypted assets, which are witnessing major and rapid development in the region." Al Blooshi also outlined the importance of market infrastructure improvement..

BlockVentures Launches Tokens and Securities Listing Platform

Advertisement This is a paid-for submitted press release. CCN does not endorse, nor is responsible for any material included below and isn’t responsible for any damages or losses connected with any products or services mentioned in the press release. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the press release. Bitcoin Press Release: BlockVentures has announced the launch of its tokens and Security token listing platform, Securities.io. The platform is a tool to aid financial backers with news, advice, and Information on tokens and securities. October 30th, 2018, GEORGETOWN, Cayman Islands — Blockchain startup BlockVentures has announced the launch of the Industries first comprehensive security token listing platform. Securities.io is a news and listing platform that aggregates all of the available information for financial backers who want to learn more about security tokens. Investors can search for security ..

US SEC Suspends Securities Trading of Nevada-Based Firm for False Crypto...

The SEC has stopped securities trading of a Nevada-based firm for making false claims that its crypto trading activities were registered with the regulator. The U.S. Securities and Exchange Commission (SEC) has suspended securities trading of a Nevada-based firm for making false claims that its cryptocurrency trading activities were approved by the SEC, according to an announcement published Oct. 22. Per the SEC’s order, in August 2018 American Retail Group, Inc. aka Simex Inc. published two press releases stating that the company had partnered with a custodian qualified with the SEC. The partnership would purportedly allow the company to conduct crypto transactions that would be “under SEC Regulations.” American Retail Group also stated in the releases that it was conducting a token offering, that was “officially registered in accordance [with] SEC requirements.” In response to the company’s statements, Robert A. Cohen, Chief of the SEC Enforcement Division’s Cyber Unit, said that “t..
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