Goodwin was excited to once again sponsor and host a client event in connection with Consensus 2023, the world’s largest, longest-running and most influential gathering that brings together all sides of the cryptocurrency, blockchain and Web3 space. Co-chairs Mitzi Chang, Grant Fondo, and Karen Ubell, in addition to Partners Jonathan Hecht, Darin See, Meghan Spillane,
Hong Kong Court Confirms the Proprietary Nature of Cryptocurrencies but Denies Clients’ Proprietary Claims
This is the first decision by the Hong Kong Court on whether clients of a crypto exchange have proprietary claims to cryptocurrencies held on the platform. It confirms that cryptocurrency constitutes property under Hong Kong law.
By Dominic Geiser, Simon Hawkins, Howard K. H. Lam, Adrian Hei-Yin Fong, Flora F. W. Innes, and Tsun Ming (Truman) Mak
In a recent landmark decision of Re Gatecoin Limited [2023] HKCFI 914 involving a Hong Kong cryptocurrency exchange in liquidation, the Hong Kong Court of First Instance expressly confirmed for the first time that cryptocurrency is “property” under Hong Kong law and can be held on trust. This decision aligns Hong Kong with the position in other major common law jurisdictions.
The court also found, based on the facts and circumstances of this particular case, that the cryptocurrency exchange did not hold assets on trust for its customers under its latest applicable terms and conditions, thereby rendering such customers unsecured creditors, rather than beneficiaries, of the exchange.
New Crypto and DeFi Products Launch; SEC Charges Crypto Exchange; States Bring Enforcement Actions; Bitcoin Public Key Added to SDN List; Hacks Continue
In this issue:
• European Bank Launches Stablecoin; Financial Firms Expand Crypto Products• Ethereum ‘Unstaking’ Data Published; New DeFi Products Launch• SEC Charges U.S. Crypto Exchange with Multiple Securities Law Violations• States Bring Crypto Enforcement Actions, Assess Supervisory Costs• OFAC Adds New Bitcoin Public Key to SDN List• DeFi Protocol
Risk Assessment Offers Treasury’s Most Extensive Comments to Date on DeFi Regulation
The Department of the Treasury’s recently issued Illicit Finance Risk Assessment of Decentralized Finance is principally intended to provide insight on how illicit actors are abusing decentralized finance (DeFi) services, as well as anti-money laundering (AML) and countering the financing of terrorism (CFT) vulnerabilities unique to DeFi. However, the report also contains critical insight on
U.S. Treasury Dept. Publishes Risk Assessment Addressing Illicit Finance Risks of DeFi
Background and Scope
The Assessment was drafted by Treasury’s Office of Terrorist Financing and Financial Crimes (“TFFC”), in consultation with multiple U.S. agencies, including the Departments of Homeland Security, Justice, and State; the Commodity Futures Trading Commission (“CFTC”); Office of the Comptroller of the Currency; and the Securities and Exchange Commission
Latham Collaborates on Fintech Mexico 2023 Annual Report
The report, which includes contributions from Latham, provides an in-depth look at Mexico’s fintech ecosystem.
On April 18, 2023, the Asociación Fintech México released its Fintech Mexico 2023 Annual Report. Along with a detailed discussion of Mexico’s booming fintech industry, the white paper presents a comparative analysis of the regulatory framework encompassing Mexico’s fintech industry, highlighting restrictions and areas of opportunity vis-à-vis best practices in Latin America and the US.
Latham contributed the US perspective and participated in the regulatory chapter of the white paper, which was prepared in collaboration with NTT Data, Mexico City-based law firm Nader, Hayaux & Goebel, and various other law firms.
Read the white paper.
Continúe leyendo para ver esta publicación en español.
Crypto Contagion – Managing Risk on Multiple Fronts
Crypto firm bankruptcies and resulting disruption in the crypto ecosystem will continue to exacerbate liquidity and regulatory concerns in this space. Since all participants supporting the crypto ecosystem are at risk, managing that risk is critical.
Fund managers should be prepared on multiple fronts.
Read the full post written by our colleagues on The Capital Commitment
CBDC Pilot Announced; Ethereum Upgrade Completed; U.S. Treasury Department Addresses DeFi Risks; Studies Analyze Crypto Taxation, Crime; Hacks Continue
• Montenegro Announces CBDC Pilot, BIS Compares CBDCs to Stablecoins• Ethereum Network Completes ‘Shanghai’ Upgrade• U.S. Treasury Publishes DeFi Risk Assessment; Banque De France Analyzes DeFi• Study Analyzes 2022 Crypto Tax Compliance Across Various Countries• EU Report Analyzes Cryptocurrency Use on Darknet Markets• Hackers Drain Millions from
The debate should not be AI vs blockchain. It’s their synergy that matters
Blockchain technology has been hailed as a revolutionary force that has the potential to transform virtually every industry. It’s been the fundamental technology behind some of the most groundbreaking developments in recent years, including the rise of cryptocurrencies, NFTs, and web3. These technologies have disrupted traditional industries, unlocked new possibilities for innovation, and created opportunities
NFT Service Brings Litigation Into the Metaverse!
As reported on the Hunton Insurance Recovery Blog, blockchain technology has been touted as inherently reliable for years. More recently, collectors of NFTs have explored expanded uses for that novel technology. Some courts have bought in and, in doing so, recently authorized a use that perhaps no one had imagined when NFTs first entered the mainstream: service of process.