All types of businesses are leveraging new and emerging business models around virtual currencies and virtual goods. Check out our video where we discuss the various legal issues that need to be addressed to safely and profitable capitalize on these significant business opportunities:
2013 was an incredibly active year for social media legal issues. Below are selected highlights on some of the more interesting legal issues that impacted social media, along with links to reference material relating to the topics. 1. Virtual Currency/Bitcoin FinCEN Virtual Currency Guidance and Enforcements – FinCEN published legal…
The intersection of social games and gambling is moving forward at a torrid pace. Yet, there are many blurred lines with respect to the legal boundaries for permissible game mechanics used in social games and online gambling offerings. The use of virtual goods and virtual currency further complicates the analysis.…
On July 23, 2013 the Securities and Exchange Commission (“SEC”) announced it was bringing charges in a Texas federal court against Trendon Shavers for allegedly using a Bitcoin Ponzi scheme to defraud investors between September 2011 and September 2012. For those who may not know, Bitcoins are anonymous, decentralized, non-government-backed…
Sean F. Kane, Pillsbury special counsel, will participate in PLI’s Think Like a Lawyer, Talk Like a Geek 2013: Get Fluent in Technology seminar by co-presenting during the “Virtual Games and Virtual Currency” session on Monday, November 18, 2013 at 11:30am. This unique program will present extraordinary sessions combining experienced…
The U.S. Department of the Treasury has targeted Liberty Reserve S.A. as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act (Section 311). According to Financial Crimes Enforcement Network (FinCEN) press release, Liberty Reserve – a web-based money transfer system or “virtual currency” –…
FinCEN recently issued interpretive guidance to clarify that it views certain activities involving convertible virtual currencies as money transmission services under the Bank Secrecy Act and FinCEN regulations. If your business involves creating, obtaining, distributing, exchanging, accepting, or transmitting virtual currencies, you may be subject to FinCEN’s registration, reporting, and…
Federal authorities executed a seizure warrant against a bank account associated with one of the leading bitcoin exchanges. The warrant was not based on bitcoins themselves being illegal. Rather, the entity was not registered as a money transmitter. The failure to so register was alleged to be a violation of…
A new Manhattan bar has become one of the few brick and mortar operations to accept Bitcoins as a method of payment. What are Bitcoins? They are essentially a form of digital cash or virtual currency. They are unique in that there is no central issuing or regulatory authority (such…
The Bank of China Hong Kong announced recently that it plans to launch its first credit card that is compatible with Near Field Communication (“NFC) technology this year. NFC is a set of standards for smartphones and similar devices to communicate with each other by either by touching or bringing…