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Category Archives: Virtual Currency

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British Columbia Securities Commission Releases Fintech Request for Comment

Posted in Fintech, Virtual Currency

On February 14, 2018, the British Columbia Securities Commission (BCSC) published a notice and request for comment (the “Notice”) on the securities law framework for Fintech regulation in the province. The Notice summarizes the results of consultations the BCSC has undertaken in the Fintech space and poses related questions to stakeholders. The Notice provides useful information—and an important opportunity to provide input—for businesses with an interest in how regulatory rules for Fintech may change in the future.

The BCSC has actively monitored Fintech developments over the past 18 months. In January 2017, the BCSC established a dedicated support group, the … Continue Reading

Technology Law Highlights: 2017 Year in Review

Posted in Anti-Spam, Copyright, Fintech, Intellectual Property, Litigation, Regulatory Compliance, Telecommunications, Virtual Currency

2017 was an eventful year in technology law both in Canada and abroad. From a surprise late reprieve from the year’s most anxiously anticipated anti-spam legislative provisions to a decision from the country’s top court upholding a Canadian-issued global order against Google, legislators, regulators and the courts made moves with important implications for technology lawyers, companies and departments in the course of the year.

Here, in no particular order, are some of the year’s highlights as chronicled by McCarthy Tétrault’s bloggers:… Continue Reading

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