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Category Archives: Virtual Currency

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Thinking of Buying or Selling a Fintech Target? Due Diligence Issues Unique to Fintech M&A

Posted in Fintech, M&A/Finance, Startups, Virtual Currency

Although many of the same considerations related to the acquisition or sale of any technology company apply, regulatory and compliance considerations are key in the fintech space.

Fintech M&A activity, in both the Canadian market and globally, is expected to be on the rise over the next few years. In its 2016 Report, FinTech: Prepare for a Wave of M&A, UK-based investment bank FirstCapital, predicts that fintech M&A deal flow will increase “as financial incumbents look to catch up with widespread innovation from new entrants, the internet majors scale up in financial services and the technology/software majors add new … Continue Reading

IMF Report Calls for “Extensive International Cooperation” in Respect of Regulation of Virtual Currencies and Associated Technologies

Posted in Virtual Currency

Coinciding with a presentation at the recent 2016 World Economic Forum in Switzerland, the International Monetary Fund released a 42-page report (the “Report”) exploring the developments, the potential and the risks related to virtual currencies and certain associated technologies, most notably “blockchain” technology, a decentralized and networked ledger system for tracking and validating transactions. The Report begins by heralding “transformational change” in the global economy driven, in significant part, by new technologies and the emergence of virtual currencies. The IMF notes that virtual currency schemes and distributed ledger technologies are questioning the paradigm of fiat currency, the dominant roles of … Continue Reading

Goldman Sachs Files Patent for Cryptocurrency “SETLcoin”

Posted in Intellectual Property, Patents, Virtual Currency

The transformational potential behind the popular cryptocurrency bitcoin continues to draw the interest of traditional financial institutions looking to ready their core businesses for a wave of new financial technology. The aspect of bitcoin that appears to be of the greatest interest to financial services organizations is not the currency itself, but the underlying blockchain technology. This technology is what enables the integrity of trading systems without a central authority.

On October 30, 2014, Goldman Sachs filed a patent application titled “Cryptographic Currency for Securities Settlement”, which claimed priority to an earlier provisional patent application filed in May 15, 2014. … Continue Reading

“Not Necessarily Regulation, but Regulation as Necessary”: Canadian Senate Committee Weighs in on Regulation of Digital Currency

Posted in Regulatory Compliance, Virtual Currency

In March of 2014, the Minister of Finance tasked the Standing Senate Committee on Banking, Trade and Commerce to examine the use of digital currencies. The Committee pursued an extensive fact-finding mission in Canada and in the United States, speaking with, amongst others, representatives from regulatory bodies, financial institutions, digital currency interest groups, law enforcement, and universities. The long-anticipated, 64-page report was published this month with a clear message: while there are steps to take to address the risks digital currencies could pose in money laundering, terrorist financing, and tax evasion, the federal government should tread carefully in developing regulations … Continue Reading