In connection with the Biden Administration’s ongoing crackdown on corruption, tax havens, and illicit financing, on December 11, Treasury released a Fact Sheet on its “efforts to address the illicit finance and national...more
For years, regulators have emphasized that the starting point for maintaining an effective compliance program is understanding the particular risks the company faces. According to Munter, this same concept applies to...more
The Internal Revenue Service (IRS) and the Department of the Treasury issued a 282 page notice of proposed rulemaking regarding digital assets and broker reporting on Aug. 26 (the Proposed Regulations), nearly two years after...more
9/14/2023
/ Brokers ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Infrastructure Investment and Jobs Act (IIJA) ,
Internal Revenue Code (IRC) ,
IRS ,
Non-Fungible Tokens (NFTs) ,
NPRM ,
Payment Processors ,
Popular ,
Public Hearing ,
Reporting Requirements ,
Stablecoins ,
U.S. Treasury
For years, the SEC has focused on broker-dealers complying with all applicable AML and financial sanctions laws and regulations, including the BSA and its implementing regulations. For example, in 2021, the Division issued a...more
In a recent ruling, a California federal judge held that Kraken, an online cryptocurrency exchange program, has to turn over user information to the IRS as a result of a John Doe summons originally served on Kraken in 2021....more
ETH Staking Data Published, Blockchain Solutions Launch for Financial Services -
According to a recent report, Ethereum’s ether (ETH) staking rewards “hit a record 8.6% post-Merge, with validators earning $46 million in...more
5/15/2023
/ ATMs ,
Blockchain ,
Crypto Exchanges ,
Cryptocurrency ,
Digital Assets ,
Ethereum ,
Financial Conduct Authority (FCA) ,
Financial Services Industry ,
Hackers ,
Malware ,
Phishing Scams ,
Proposed Legislation ,
State Attorneys General ,
UK
“Z” Doors Are Open: Rival Zero Knowledge EVMs Launch -
Earlier this week, a technology innovation lab reportedly released a public Alpha version of its “zero-knowledge Ethereum Virtual Machine” (zkEVM), which has been...more
4/3/2023
/ Banks ,
CFTC ,
Commodity Exchange Act (CEA) ,
Crypto Exchanges ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Depository Institutions ,
Enforcement Actions ,
Ethereum ,
Federal Reserve ,
Securities and Exchange Commission (SEC)
New ERC-4337 Smart Contract Standard Released to Enhance Wallet Security -
According to reports, Ethereum has deployed a new feature known as “account abstraction,” which has been in development for two years and can “make...more
3/6/2023
/ Banking Regulators ,
Cryptoassets ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Wallets ,
G20 ,
Hackers ,
IMF ,
Ontario Securities Commission (OSC) ,
Popular ,
Smart Contracts ,
Trading Platforms
DeFi, Stablecoin Products Launch; Bitcoin Network Spikes Due to NFTs -
According to reports, a new decentralized finance (DeFi) protocol recently launched that allows users to deposit the stablecoins USDC or DAI in a...more
2/13/2023
/ Bitcoin ,
Blockchain ,
Criminal Prosecution ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Department of Justice (DOJ) ,
Digital Assets ,
FASB ,
Individual Retirement Account (IRA) ,
Money Laundering ,
Non-Fungible Tokens (NFTs) ,
North Korea ,
Ransomware ,
Securities and Exchange Commission (SEC) ,
Securities Tokens ,
Stablecoins
As one of its last acts of 2022, Congress aimed to close loopholes in the Anti-Money Laundering Act of 2020 (AMLA) that left it unclear how and how much whistleblowers would be paid. On Dec. 23, 2022, Congress passed the...more
Takeaways:
..2022 IRS Criminal Investigation Annual Report highlights significant prosecutions and identifies cryptocurrency as an area of top priority heading into 2023.
..Criminal Investigation Chief Jim Lee...more
As part of a coordinated effort with the U.S. Secretary of State, Attorney General, Secretary of Commerce, Secretary of Homeland Security, Director of the Office of Management and Budget, Director of National Intelligence,...more
10/17/2022
/ AML/CFT ,
Anti-Money Laundering ,
Anti-Terrorism Financing ,
Banking Sector ,
Biden Administration ,
Digital Assets ,
Executive Orders ,
FATF ,
Financial Transactions ,
Regulatory Reform ,
Risk Mitigation ,
Virtual Currency
Key Takeaways -
..A court approved the issuance of a John Doe summons by the IRS to a bank aimed at identifying individuals who are potentially avoiding their income tax obligations relating to cryptocurrency...more
9/29/2022
/ Banks ,
Bitcoin ,
Crypto Exchanges ,
Digital Assets ,
IRS ,
John Doe Investigation ,
Ponzi Scheme ,
Summons ,
Tax Avoidance ,
Tax Liability ,
Tax Returns ,
Virtual Currency
NFT Initiatives Launch in Ticket Sales, Social Media and College Football -
According to a recent press release, a major ticket sales and distribution company announced that event organizers who sell tickets on its platform...more
9/12/2022
/ Banking Regulators ,
Blockchain ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Department of Justice (DOJ) ,
Digital Assets ,
Enforcement Actions ,
Fraud ,
Hackers ,
Non-Fungible Tokens (NFTs) ,
OCC ,
Popular ,
Sports
On Oct. 6, 2021, the U.S. Department of Justice (DOJ) announced the creation of a National Cryptocurrency Enforcement Team to tackle investigations and prosecutions of criminal misuses of cryptocurrency. As the non-fungible...more
8/31/2022
/ Bribery ,
Counterfeiting ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Enforcement Authority ,
Enforcement Priorities ,
Foreign Corrupt Practices Act (FCPA) ,
Fraud ,
Insider Trading ,
Market Manipulation ,
Money Laundering ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Spoofing
Cryptocurrency and digital assets have kept the courts and regulators busy as digital assets continue to pose new questions and challenges for anyone involved in their sale, trade or development. The following trends have...more
8/26/2022
/ CFTC ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Digital Wallets ,
Enforcement Actions ,
Fraud ,
Indictments ,
Insider Trading ,
IRS ,
John Doe Investigation ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Regulatory Agencies ,
Regulatory Violations ,
Securities and Exchange Commission (SEC) ,
Service of Process ,
Tax Evasion
Key Takeaways:
..The IRS issued its fourth John Doe summons against digital asset platform sFOX, seeking information regarding user identity and transaction activity over $20,000.
..The use of John Doe summonses...more
8/22/2022
/ Bitcoin ,
Criminal Liability ,
Crypto Exchanges ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Currency ,
IRS ,
John Doe Investigation ,
Summons ,
Tax Evasion ,
Tax Liability ,
Virtual Currency
Bitcoin Network Mining Difficulty Continues Downward Trend Amid Heat Wave -
A recent analysis of Bitcoin mining activity has shown that Bitcoin Network mining difficulty dropped by 5 percent recently, continuing a...more
CryptoPunk Sold at $2.6M, USPTO to Address NFTs, Court Approves NFT Service -
A rare NFT from the CryptoPunk collection recently sold for approximately $2.6 million, the fifth-largest sale in the collection’s history....more
7/18/2022
/ Biden Administration ,
Bureau of Industry and Security (BIS) ,
Copyright Office ,
Digital Assets ,
Enforcement ,
Financial Regulatory Agencies ,
FSB ,
Information Reports ,
Intellectual Property Protection ,
IOSCO ,
Non-Fungible Tokens (NFTs) ,
Stablecoins ,
U.S. Treasury ,
UK ,
USPTO
Financial Firm Launches Crypto Group, MakerDAO Votes to Integrate with Bank -
A major multinational financial institution recently “announced the formation of its Digital Assets and Financial Markets group.” According to...more
7/11/2022
/ Basel Committee on Banking Supervision (BCBS) ,
Brand ,
CFTC ,
Cryptocurrency ,
Cyber Crimes ,
Decentralized Finance (DeFi) ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Financial Action Task Force ,
Financial Institutions ,
Fraud ,
Hackers ,
Infringement ,
IP Litigation ,
New Guidance ,
Non-Fungible Tokens (NFTs)
Key Takeaways -
..In June 2022, the DOJ issued a Report recommending increased cooperation amongst international law enforcement to combat crimes involving digital assets.
..The Report identified characteristics...more
6/30/2022
/ Banking Sector ,
Biden Administration ,
Central Bank Digital Currency (CBDCs) ,
Criminal Investigations ,
Cross-Border ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Executive Orders ,
FATF ,
Information Reports ,
Law Enforcement
Key Takeaways -
..Taxpayers could be criminally and civilly liable under state False Claims Act statutes for underreporting income linked to virtual currency.
..While the federal False Claims Act explicitly excludes tax...more
5/24/2022
/ Criminal Prosecution ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Enforcement ,
False Claims Act (FCA) ,
Infrastructure Investment and Jobs Act (IIJA) ,
IRS ,
Popular ,
Reporting Requirements ,
Tax Avoidance ,
Tax Fraud ,
Whistleblowers
BIS Releases Survey on CBDC Initiatives; New Crypto Products Launch -
The Bank for International Settlements (BIS) recently released the results of its 2021 survey of central bank digital currencies (CBDCs). According to...more
5/16/2022
/ Casinos ,
Central Bank Digital Currency (CBDCs) ,
CFTC ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Exchange-Traded Products ,
Korea ,
Metaverse ,
Non-Fungible Tokens (NFTs) ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
SDN List ,
Securities and Exchange Commission (SEC) ,
Security Risk Assessments ,
Stablecoins
Key Takeaways -
..The Joint Chiefs of Global Tax Enforcement (J5) issued its first intelligence bulletin providing guidance to banks, law enforcement partners and private investigators regarding indicators of potential...more
5/4/2022
/ Anti-Money Laundering ,
Banking Sector ,
Fraud ,
International Tax Authority ,
International Tax Issues ,
IRS ,
Joint Task Force ,
Know Your Customers ,
Law Enforcement ,
Market Participants ,
New Guidance ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Tax Authority ,
Tax Evasion ,
Tax Fraud
This week Anchorage Digital, a digital asset platform and infrastructure provider that is also the first federally chartered cryptocurrency bank, announced that it has added custody support for 11 new digital assets....more
4/25/2022
/ Central Bank Digital Currency (CBDCs) ,
Cryptocurrency ,
Cybersecurity Information Sharing Act (CISA) ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Economic Sanctions ,
Hackers ,
Office of Foreign Assets Control (OFAC) ,
Proposed Rules ,
Securities and Exchange Commission (SEC) ,
Virtual Currency