Digital Currency Weekly Recap 11-6-2016
ULC Model Crypto Legislation May Be Nearing Final Form
The Uniform Law Commission – a nonprofit that has spent the last year developing draft legislation that it hopes could serve as a template for all cryptocurrency legislation across the United States - may be nearing finalization. According to recent reports in a Coin Center blog post, the project is nearing an end and could be completed as early as next summer. The idea is to provide model legislation that states could use to achieve harmonization of digital currency regulation throughout the country.
Observers currently anticipate that ULC members will be able to vote on the final language at its summer meeting in 2017. If approved, it would then be up to the states to decide whether they wanted to accept and adopt the proposed legislation, include certain provisions in their own regulatory scheme, or chart their own course.
Swiss Moving to Regulate Digital Currency
The Swiss focus on digital currency continued this week as the nation’s Federal Department of Finance (FDF) unveiled an outline for its FinTech regulations strategy. The revelation came in the same week that the nation’s rail operator announced that it would soon be using its rail ticket kiosks for Bitcoin sales to Swiss consumers. This latest announcement also indicated that the FDF is considering the introduction of new statutory language in 2017.
The plans appear to be targeted toward the development of new licensing measures and a separate set of regulations for firms engaged in experimental activities. As envisioned, these regulations would be managed by Switzerland’s Financial Market Supervisory Authority. The FDF’s announced goal is to create a regulatory regime that can help to attract new FinTech companies and innovation. Already, a number of new startups have been drawn to Switzerland, thanks to its strong financial services industry and liberal stance toward the FinTech industry.
Legal Powerhouse Cooley Adds FinTech Experts
Cooley, the global legal firm with more than 900 attorneys in the United States alone, this week announced that it has strengthened its FinTech team with the hiring of two Pillsbury Winthrop Shaw Pittman cryptocurrency experts. The company announced that it had hired Marco Santori, who one reporter referred to as the “Dean of Digital Currency Lawyers” and Patrick Murck who at one time served as general counsel for the Bitcoin Foundation. Cooley’s new hiring effort should help it to provide the FinTech community with the legal resources it needs as new regulatory structures continue to emerge around the globe.
Shinhan Bank to Launch Cryptocurrency Transfer Service
Shinhan Bank this week announced plans to launch its own cryptocurrency transfer service in December, beginning with Bitcoin remittance services between South Korea and China. Since digital currency is not legally allowed as payment within South Korea, the bank will be using Hong Kong as an intermediary. The plan is for money to be relayed to a Hong Kong digital currency exchange. From there, cryptocurrency will be sent to the Chinese exchange and exchanged for that nation’s local currency.