Broker-Dealer Registration and Compliance

The activities of cryptocurrency businesses require a review of nuanced statutes and regulations enforced by the Securities Exchange Commission. One such statute is the Securities Exchange Act of 1934, which requires contains provisions relating to securities brokers, dealers, and financial institutions. Generally, a broker is any person engaged in the business of effecting transactions in securities for the account of others.

Cryptocurrency brokers and dealers must consider the applicability of such laws and other special rules to their business operations. Our attorneys have experience advising financial institutions on sophisticated and bleeding-edge technology questions applicable to broker-dealer transactions occurring in a modern and global marketplace.

We have experience with self-regulatory organizations (“SROs”), government regulators, custodians, administrators, other industry professionals, and consultants with regard to new and evolving questions presented by blockchain technology.

The banking system in the United States consists of two regimes: a nationally regulated system and a state-regulated system. Many states have laws permitting the operation of a state-chartered trust company, a premier option for certain virtual currency businesses. New York, for example, issues charters for Limited Purpose Trust Companies allowing virtual currency companies to buy, sell, transmit, store and custody virtual currency on behalf of third-parties, including exchanging virtual currencies for fiat currencies, operate a virtual currency trading exchange, and issue virtual currency. Similarly, Wyoming offers a charter for Special Purpose Depository Institution permitting similar activities by virtual currency companies

The attorneys at Bull Blockchain Law advise clients on the requirements applicable to their digital asset business activities and can help prepare applications for approval of a state trust charters. We advise on regulations tailored to digital assets and address issues such as technology controls, transaction handling, and custody operations for digital assets. 

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