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Treasury Risk Assessment Emphasizes That Decentralized Crypto Companies Have AML and Sanctions Compliance Obligations

Earlier this month, the U.S. Department of the Treasury (Treasury) released its Illicit Finance Risk Assessment of Decentralized Finance (Assessment). This Assessment, part of a broad regulatory scrutiny of entities that...more

Strings Attached: New Proposed Rules Outline National Security Guardrails for CHIPS Act Funding Recipients

On March 23, 2023, the National Institute of Standards and Technology (NIST) released a Notice of Proposed Rulemaking (proposed rule) that sets forth the national security guardrails for funding under the CHIPS and Science...more

CHIPS Act Funding Kicks Off: First Tranche of Funding Announced

On February 28, 2023, the National Institute of Standards and Technology’s (NIST’s) CHIPS Program Office published the first Funding Opportunity Announcement (FOA) under the CHIPS and Science Act. This initial FOA is directed...more

FinCEN Issues ‘First-of-its-Kind’ Order Against Crypto Asset Exchange Linked to Illicit Russian Activity

On January 18, 2023, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) designated Bitzlato Limited (Bitzlato), a crypto asset exchange business incorporated in Hong Kong, as a “primary money...more

Focus on Fintech – Q4 2022

In this latest issue of Wilson Sonsini's Focus on Fintech newsletter, we discuss the FTX bankruptcy and the increased federal regulatory scrutiny of crypto assets, and new rules and innovations in the payments...more

Coinbase Agrees to Pay $100 Million and Improve Compliance Program as Regulators Continue Scrutiny of Crypto Asset Companies

The consent order issued by the New York Department of Financial Services (NYDFS) to crypto asset exchange, Coinbase, serves as a reminder of regulators’ growing interest in ensuring that crypto asset companies meet their...more

Crypto Exchange Agrees to Pay More Than $362,000 to Settle Alleged Sanctions Violations

On November 28, 2022, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) announced that Payward, Inc. d/b/a Kraken, a U.S.-based cryptocurrency exchange, agreed to pay $362,158.70 to settle charges relating to its...more

CFIUS Guidelines: Betwixt and Between

On October 20, 2022, the Committee on Foreign Investment in the United States (CFIUS or the Committee) issued its first-ever set of “Enforcement and Penalty Guidelines.” The Guidelines introduce for CFIUS participants a new...more

Focus on Fintech - Q3 2022

Welcome to Wilson Sonsini’s Focus on Fintech newsletter. This quarterly newsletter provides ongoing analysis and commentary on regulatory developments impacting the fintech industry. The third quarter of 2022 has been a...more

Cryptocurrency Exchange Platform Agrees to Pay over $53 Million for Anti-Money Laundering and Sanctions Violations

On October 11, 2022, the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC) announced settlements with Bittrex Inc. (Bittrex). The settlements arise from violations of...more

Final Regulations on Beneficial Ownership Will Require “Tens of Millions” of Legal Entities to File Reports

On September 30, 2022, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) published its final regulations on Beneficial Ownership Information (BOI) Reporting Requirements. The regulations...more

President Biden’s Executive Order on CFIUS Likely to Yield Incremental Tightening

On September 15, 2022, President Biden signed an Executive Order (EO) detailing certain national security risks that the Committee on Foreign Investment in the United States (CFIUS or the Committee) should consider when...more

Money Services Businesses Penalized for Failure to Adopt Robust Anti-Money Laundering Practices

Two recent federal enforcement actions—announced the same day—have underlined the need for crypto companies to carefully consider their anti-money laundering (AML) obligations or else risk significant penalties....more

A Tale of Two Filers: CFIUS Report Touts Efficiency, Also Indicates CFIUS Failed to Meet Statutory Deadlines for a Large...

This year's version of the annual Committee on Foreign Investment in the United States (CFIUS) report, released on August 2, 2022, and covering calendar year 2021, has a Dickensian quality. As usual, it's a dense work. But...more

Proposed Legislation Seeks to Create "Reverse CFIUS": National Security Review of Outbound Activity Benefiting Entities or...

U.S. lawmakers have proposed requiring government approval for certain outbound investments, much as today's Committee on Foreign Investment in the United States regime requires a national security review of certain...more

BEIS Blocks First Transaction Under the UK’s National Security and Investment Act

On July 20, 2022, the Secretary of State for the Department for Business, Energy, and Industrial Strategy (BEIS) within the UK government published a final order blocking a proposed licensing arrangement between the...more

Headed to the Metaverse? Be "The One" to Minimize Money Laundering Risk

Wilson Sonsini provides extensive and cutting-edge legal services for innovators, technology pioneers, and disruptors. As part of our focus on emerging technologies, our attorneys are publishing a series on applying and...more

BEIS Publishes First Annual Report Regarding the UK's National Security and Investment Act

On June 16, 2022, the Department for Business, Energy, and Industrial Strategy (BEIS) published its first annual report regarding the National Security and Investment Act 2021 (the NSI Act). The report solely covers the...more

No Foolish Transactions: A Few Guidelines for NFT Marketplace Participants to Mitigate Anti-Money Laundering Risks

The global NFT (non-fungible token) market now is worth dozens of billions of dollars annually. Innovators and early adopters, marketplaces, and sellers, are all eager to join this market but may have questions about how to...more

President Biden Signs Executive Order on Ensuring Responsible Development of Digital Assets

President Biden launched an effort to establish a federal digital assets policy strategy and coordinate the related work of federal regulators by signing the Executive Order on Ensuring Responsible Development of Digital...more

Is Regulation of NFTs to Combat Financial Crime on the Horizon?

On February 4, 2022, the United States Department of the Treasury (the Treasury) issued a report titled, "Study of the Facilitation of Money Laundering and Terror Finance Through the Trade in Works of Art." The report...more

CJEU Publishes Judgment Interpreting the EU’s Blocking Regulation

In December 2021, the Court of Justice of the European Union (the CJEU) published a judgment interpreting the European Union's Blocking Regulation....more

New Rules Will Require Beneficial Ownership Reporting to Federal Regulators by U.S. and Foreign Corporations, LLCs, and Other...

On December 8, 2021, the Treasury Department's Financial Crimes Enforcement Network (FinCEN) published its proposed regulations on beneficial ownership information (BOI) reporting requirements. These FinCEN regulations will...more

The UK's National Security and Investment Act Now Fully in Force

The United Kingdom's National Security and Investment Act (the NSI Act) is now fully in force. First proposed in 2016, the NSI Act creates a stand-alone regime that authorizes the UK government to consider and address the...more

New OFAC Guidance Raises the Stakes for Crypto Industry

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) published new guidance last week for the virtual currency industry. While OFAC's economic sanctions compliance obligations apply to all U.S. persons, the...more

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