Digital Currency
Overview
As the use of digital currency and the adoption of blockchain technology has proliferated, creating a highly efficient alternative for global commerce, it has been simultaneously complicated by a lack of regulatory certainty. The debate over the long-term potential of digital currencies and blockchain technology has been influenced in part by the regulatory scrutiny of regulators in the United States and Europe including, the Commodity Futures Trading Commission (CFTC), the Federal Bureau of Investigations (FBI), the U.S. Department of Justice, the U.S. Department of the Treasury through the Financial Crimes Enforcement Network (FinCEN), the Internal Revenue Service (IRS), the U.S. Securities and Exchange Commission (SEC), and the state of New York through the Department of Business Oversight.
BCLP has assembled a cross-functional team that counsels clients on the regulatory issues presented by the development of digital currencies and the application of blockchain technology. The Digital Currency Team includes members of the following practices:
- FinTech and Payments
- Broker-Dealer Litigation, Arbitration, and Regulatory Practice
- Fund Formation Team
- Intellectual Property
- Prepaid and Emerging Payments Team
- Public Policy and Government Affairs
- Securities Litigation and Enforcement
- White Collar Defense and Investigations
In addition, we work closely with our extensive network of international offices on cross-border matters.
This team focuses on the regulatory aspects of digital currencies and blockchain technology in light of existing regulations and in light of past prosecutions by the Department of Justice against leading digital currency platforms, FinCEN regulatory actions against money services businesses and money transmitters, SEC enforcement actions against collective investment vehicles and mining operations that focus on digital currencies, and congressional focus on emerging digital currency businesses. The Digital Currency Team also counsels clients on the potential regulations that will be applied to digital currencies by the CFTC, FinCEN, the SEC and state regulators.
Areas of Focus
Digital currency businesses may be subject to a range of state and federal laws, including:
- CFTC Registration
- Criminal prosecution by the Department of Justice
- Federal Bank Secrecy Act (BSA) and anti-money laundering (AML) laws
- Formation and registration of digital currency funds with the SEC
- State and federal regulations governing money service businesses and money transmitters
Any client planning to develop, launch or expand a digital currency business faces significant regulatory challenges. BCLP can effectively advise digital currency businesses in the following areas:
- Federal Bank Secrecy Act and AML compliance policies, procedures, and controls
- Product launches, including design, fees, terms and conditions, and product terminations, including dispute resolution, termination and wind-down procedures
- State and federal licensing requirements and exemptions
The Digital Currency Team maintains updated 50 state surveys in all areas of state law affecting digital currency businesses. In addition to counseling on the regulatory issues, BCLP also defends clients against government investigation and complex commercial matters related to digital currencies.
Client Stories
Related Practice Areas
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Fintech
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Payment Systems
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Data Privacy & Security
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