Connect with us

Regulation

Revealing crypto exchange’s physical location was not harmful, court rules

Published

on



A federal judge has ruled that an employee who revealed the location of a major crypto exchange did not violate its trade secrets.

According to court records filed Sept. 22, U.S. District Judge Maxine M. Chesney has dismissed a lawsuit filed by Payward Inc. — the owner of Kraken — against former employee Nathan Peter Runyon for misappropriating “trade secrets” by publicly disclosing the exchange’s physical address in San Francisco and accessing one of the company’s protected computers.

The Judge ruled that Payward was not alleging Runyon used the address to gain an economic advantage, nor did the complaint include facts that accessing the computer caused “damage or loss, in any amount, to Payward.”

Runyon published the address in a November 2019 lawsuit he filed against the exchange in connection with alleged breach of contract and sanctions violations. He accused Kraken of unethical and illegal business tactics, defrauding employees over their stock options, sanctions violations, discrimination against him as a disabled military veteran and faking company officer addresses.

Payward filed the suit against Runyon in March, stating that keeping its address secret protects it from physical threats including workers being kidnapped. The exchange also claimed that by publishing its address, Runyon had breached the terms of his original contract fr when he was employed as a financial analyst from March 2018 to August 2019.

Judge Chesney stated that Payward will have the right to file an amended complaint against Runyon before Oct. 9.



Source link

Regulation

New York authorizes first Yen stablecoin operator in the US

Published

on

By



New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.