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    Cyber (Digital Currency)

 

  • Typical digital currency tasks, such as capitalization compliance, crowdsourcing, initial coin offerings (ICOs), intellectual property protection, internet law, marketing matters, partnership agreements, transactional matters, taxation.

 

  • Typical cryptocurrency issues, such as arranging proper trade secret parameters for fintech startups and established businesses, Bitcoin automated teller machines (ATMs), complying with the legal parameters applicable to crowdsourcing initiatives leveraging digital currencies, developing tax-efficient cryptocurrency business structures, establishing blockchain-related and cryptocurrency-related businesses, filing all required tax returns to account for cryptocurrency gains, performing market research and analysis to compare performance with those of competitors, registering intellectual property for new blockchain and digital currency entities.

 

  • Consultation regarding digital currency traded through foreign exchanges being subject to the reporting requirements of both the Foreign Account Tax Compliance Act (FACTA) Form 8938 (if accounts in foreign banks belong to a person born in the U.S., who has U.S. contact information, has included instructions for transfers from the foreign accounts to accounts in U.S. banks, and the accounts have a U.S. resident with either power of attorney or signatory authority) and Foreign Bank Account Reporting (FBAR) Financial Crimes Enforcement Network (FinCEN) Form 114 (if the aggregate of all foreign accounts of a U.S. taxpayer exceeds $10,000 at any time during the prior year).

 

  • Familiarity with the Securities and Exchange Commission (SEC) October 1, 2019 decision letter in which the SEC applied the SEC v. Howey test (to be considered a security, a financial vehicle must be an investment, in a common enterprise, with the expectation of profit, derived from the efforts of third-parties) to determine that Bitcoin is not considered a “security” for the purposes creating an investment company pursuant to the Investment Company Act to form an investment company for the sole purpose of investing in Bitcoin itself as a security.

 

  • Consultation regarding the Securities and Exchange Commission (SEC) Regulation A+ exemptions allowing for two tiers of offerings that may be marketed to a larger pool of potential investors, including unaccredited investors.

 

  • Familiarity with SEC enforcement actions against multi-level marketing (MLM) pyramid (ponzi) model digital currency companies, and with the SEC use of the Howey test to determine if an ICO qualifies as a security.

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    Last updated 200614_2242

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