Cryptocurrency & Digital Assets

Cryptocurrency and digital assets are a rapidly growing area in the financial services industry, and are becoming increasingly used as means of payment in day-to-day transactions by vendors and consumers alike. They also remain an area which many investors are branching into, bolstered by the increased use and success of many of these crypto assets over the past decade.

The new Financial Services and Markets Bill is expected to overhaul cryptocurrency regulation in the United Kingdom. It is set to impose a number of new rules and requirements on crypto firms, whilst also opening up new opportunities for these assets both as investment products and in everyday use. It will be essential for crypto firms and investors to understand the new crypto regulation which will govern how these digital assets are regulated and what permissions, authorisations and other approvals will be needed in order to continue business in the crypto space.

Where can our crypto lawyers help?

Our financial services regulation team can advise on a broad range of regulatory matters relating to cryptocurrency and digital assets for crypto firms and managers, as well as for investors and individual consumers, including:

• Applying to the Financial Conduct Authority for authorisation
• Complying with relevant financial services legislation
• Advising on requirements under anti-money laundering regulations
• Providing ‘future planning’ advice for firms to help prepare for the new regulatory regime for cryptocurrency and digital assets in the UK
• Providing general risk management advice for firms, including firms moving into cryptocurrency investment or management
• Advising investors on regulatory risk of investments in crypto assets/crypto funds
• Crypto and digital product development
• Cryptocurrency and digital asset payment procedures and issues.

Our cryptocurrency legal expertise in the media

Our financial services regulation team is closely involved with the legal developments surrounding cryptocurrency and is regularly featured in the media. We have been quoted by the BBC News, Daily Express, IT Pro, Verdict and Private Banker International in articles on crypto matters, including highlighting what steps investors can take in the face of failed crypto investments (e.g. relating to the FTX crypto exchange).

Crypto funds

Our specialist private funds lawyers advises fund managers on structuring funds and separate managed accounts for investment in crypto assets (whether as core or non-core to a fund strategy), helping them select the right structure and terms suitable for them and their investors. We set up funds in both on-shore and off-shore jurisdictions (using best-in-class local counsel where necessary), and can support ongoing fund management operations and advise on regulatory issues affecting fund managers sponsoring crypto funds.