Fund Updates

Regulations

The latest regulatory changes, updates, and decisions impacting the alternative investment sector.

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Digital Assets: India Plans To Criminalize Crypto-Assets (Reuters)

March 15, 2021

A Reuters report today, which quoted a senior Indian government official, said India plans to outlaw cryptocurrencies such as bitcoin, making anyone trading or holding them punishable with fines.

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More Stories on Regulations

Digital Assets: Ripple Refutes The SEC’s Charges In 100-Page Reply

March 5, 2021

Ripple claims XRP is a virtual currency, not a security, and the SEC has no authority to regulate it as one. Ripple Labs on Thursday filed its answer to the complaint by the US Securities and Exchange Commission that ripples distributions of XRP constituted investment contracts and were subject to registration under the Securities Act…

Alternative Investments/Digital: CBOE Ignites Bitcoin ETF Hope; Files To List VanEck’s BTC ETF

March 2, 2021

The pressure is now building upon the SEC for approving a bitcoin ETF. Shortly after the Canadian regulators approved two bitcoin ETFs, the Chicago Board Options Exchange (CBOE) has notified the US SEC of its intention to list the BTC ETF from investment management firm VanEck and its Bitcoin Trust.

Digital Assets: South Korean Central Banker Engages In Bitcoin Bashing

February 25, 2021

Bank of Korea Governor Lee Ju-yeol, when speaking at a parliamentary session on Wednesday, said crypto-assets such as bitcoin had no intrinsic value and were victim to highly volatile price swings.

Alternative Investments/Digital Assets: Valkyrie Joins The Race To Launch A Bitcoin ETF

January 25, 2021

Valkyrie Digital Assets LLC, a wholly-owned subsidiary of Valkyrie Investments Inc., has thrown its hat in the ring to obtain SEC approval for the launch of a bitcoin ETF. On Friday, Valkyrie submitted its application to the regulator for the “Valkyrie Bitcoin Fund,” to be listed on the New York Stock Exchange.

FinTech: China Tightens Antitrust Regulatory Screws On Fintechs

January 22, 2021

The People’s Bank of China published a draft set of rules on Wednesday for anti-trust regulation of the non-bank payment providers in the fintech sector. The draft is in the public opinion domain until February 19.

FinTech: China Mounts Anti-Trust Probe Into Alibaba In Regulatory Crackdown

December 24, 2020

China’s State Administration for Market Regulation (SAMR) announced Thursday an investigation into Alibaba’s (NYSE: BABA) allegedly monopolistic practice of barring its merchants from selling on competing e-commerce platforms. Merchants must agree to sell their products only on the behemoth’s online shopping platform.

Digital Assets: SEC Has Ripple In The Dock; Garlinghouse Fires Back

December 23, 2020

The SEC on Tuesday charged Ripple and two executives for raising over $1.38 billion via an unregistered securities offering.
The SEC filed the complaint in the federal district court in Manhattan alleging that the defendants violated the registration provisions of the Securities Act. It prayed for injunctive relief, disgorgement with prejudgment interest, and civil penalties. The two executives named in the complaint are Christian Larsen, Ripple’s co-founder, executive chairman of its board, and former CEO; and Bradley Garlinghouse, the company’s current CEO.

FinTech: Large Chinese Fintechs Stop Taking Online Deposits For Banks

December 23, 2020

On Friday, the Jack Ma-controlled Ant Group’s Alipay platform, which offers an impressive array of financial products to its customers, removed online deposits that it was accepting on behalf of several banks. The reason – regulatory restrictions.

Digital Assets: Clayton’s Parting Shot At Crypto – SEC To Sue Ripple

December 22, 2020

The SEC will likely sue Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen, according to Fortune. The SEC will charge the defendants for selling XRP tokens, which it alleges are unlicensed securities. XRP ranks third in the pecking order of cryptocurrencies with a market cap of $23 billion. The SEC would make the case that XRP is a security and it needed to be registered as an investment contract prior to its sale.

FinTechs: Call For Regulating Australian Buy-Now-Pay-Later Fintechs

December 22, 2020

In an article titled “Fintech Risk in 2021,” Halverson warns of heightened fintech risk in 2020 following free central bank “helicopter” money, overenthusiastic private equity and venture capital firms, and exuberant stock markets. In particular, he points to fintechs offering buy-now-pay-later (BNPL) products that have captured consumers’ fancy and encouraged them to increase their indebtedness.

FinTech: Chinese Regulators Keep Up Rhetoric Against (Very Large) Fintechs

December 21, 2020

The barrage of regulatory voices against the “fintech-that-shall-not-be-named” continues. In the latest call to hobble giant fintechs such as the Ant Group, former finance minister Lou Jiwei said regulators should restrict the number of banks that they can partner with.

Digital Assets: OSL The First Crypto Exchange To Be Licensed By Hong Kong’s SFC

December 18, 2020

The Securities and Futures Commission (SFC) licensed OSL Digital Securities to operate a regulated brokerage and automated trading service for digital assets. OSL is now the world’s first SFC-licensed, listed, digital asset wallet-insured, Big-4 audited digital asset trading platform for institutions and professional investors, it said in an announcement.

FinTech: Top Chinese Regulatory Watchdog Airs Fintech Concerns

December 2, 2020

In an article in a newly released book from the central government explaining the country’s economic priorities and development plan for 2035, Guo warned of a disturbance in global financial markets if the United States stepped up its strategic containment and rivalry with China. Given this circumstance, China is taking steps to address financial vulnerabilities that could stem from fintech giants such as the Ant Group.

Digital Assets: Gazprombank (Switzerland) FINMA-Cleared For Crypto Bank Accounts

November 2, 2020

Gazprombank (Switzerland), the wholly-owned Swiss arm of Russia’s Gazprombank (JSC), announced October 29 that it had received regulatory clearance from the Swiss Financial Market Supervisory Authority to offer crypto custody and trading services to its institutional and corporate clients.

Digital Assets: The U.K.’s Financial Conduct Authority (FCA) Bans Crypto Derivatives For Retail

October 7, 2020

After an 18-month study of the cryptoassets market, followed by a consultation, the U.K’s Financial Conduct Authority banned the sale of crypto-derivatives to retail customers on grounds they were “ill-suited for retail consumers due to the harm they pose.”

Digital Assets: State Regulators Roll Out Multi-State Compliance For Crypto and FinTech Firms

September 17, 2020

Nationwide payments firms now have to undergo a single comprehensive exam to effectively satisfy all states’ regulatory compliance requirements. The Conference of State Bank Supervisors (CSBS) announced Tuesday its “MSB Networked Supervision” initiative in this regard, effective 2021.

Alternative Investments: SEC Revamps Definition of “Accredited Investor” For Private Capital Markets

August 27, 2020

The SEC on Wednesday amended its definition of “accredited investor,” a term that drew a line between high-earning, deep-pocketed investors and retail investors for access to often lucrative opportunities in the private capital markets. Also known as “alternative investments,” these markets include, for example, venture capital, hedge funds, private equity, and real estate.

Venture Capital: VCs And Startups Rejoice – The NYSE Has An Alternative To IPOs

August 27, 2020

In a ruling Wednesday, the SEC gave the New York Stock Exchange the green light to let companies raise capital through a “Primary Direct Floor Listing” process. Before this decision, private companies could use the direct method to list their shares on the stock exchange but did not themselves receive any of the proceeds from the IPO. That’s because this route allowed existing investors in those companies to sell their shares on the market (“Selling Shareholder Direct Floor Listing”), with no new capital being raised by the company itself.

Digital Assets: Hong Kong’s SFC Greenlights Arrano’s Bitcoin-tracking Fund

April 29, 2020

Founded in 2019, Arrano Capital is the blockchain arm of Venture Smart Asia Limited. On April 20, Venture Smart Asia got the approval from the Hong Kong Securities and Futures Commission to launch the territory’s first regulated virtual-assets fund. The approval let Arrano Capital set up its bitcoin tracking fund, one that could invest 100% in virtual assets.

Liquid Alternatives: What the Proposed New Regulations on Leveraged ETFs Mean for Investors

March 12, 2020

The SEC’s proposed regulations have triggered widespread opposition, particularly those relating to leveraged (geared) ETFs.
The public has until March 24, 2020, to submit its comments on the proposals.

Digital Assets: Blockchain Securities May See New Dawn in 2020

February 14, 2020

Regulatory progress may lay the base for a revival of blockchain-based securities such as tokens and ICOs. According to Aaron Kaplan, the SEC’s strategy to crack down on digital assets and apply the rigor of traditional securities’ regulation to blockchain securities is a welcome move.
He likened it to the days of old when the criminal excesses of “bucket shops” yielded to regulation through securities law.

Digital Assets: German Banks Line Up for Licenses to Offer Crypto-Custody Services

February 13, 2020

About 40 banks have applied to Germany’s Federal Financial Supervisory Authority, or BaFin, for licenses to operate custody services for digital assets. (Coingeek)
Bafin last month released new guidelines that will impact firms offering or intending to offer custody services for digital assets such as cryptocurrencies and tokens. Effective January 1, 2020, depository or custody services for crypto assets stand classified as a financial service under the German Banking Act.

FinTech: Australian Legislators Pass Law to Enhance ASIC’s Fintech Regulatory Sandbox

February 12, 2020

Australian Legislators Pass Law to Enhance ASIC’s Fintech Regulatory Sandbox. The amendments passed on Monday extend the scope and timeframe fintechs can spend on the existing ‘sandbox.’ The ‘Treasury Laws Amendment (2018 Measures No. 2) Bill 2019‘ allows more businesses such as fintechs to test a wider range of new financial and credit products and services without a licence from ASIC for up to 24 months.

Digital Assets: In Reforms Push, China Mulling Rules for New Digital Banks, Including by Foreigners

January 17, 2020

China is working on guidelines for the establishment of online-only banks.
Chinese regulators are pushing for the establishment of new, 100% digital banks to reduce risk in the country’s financial sector. They also want to broaden Chinese banking by allowing participation from new players including foreigners.