Director Dominic Holden explores the increasingly important role of cyber insurance for SMEs, and discusses how businesses can best ensure they are protected from cyberattacks, data breaches and hacking.
Dominic’s article was published in Thomson Reuters Regulatory Intelligence, 21 February 2025, and can be found here:
Cybersecurity_ a blind spot for SMEs – [regintel-content.thomsonreute
With Chinese AI platform DeepSeek rapidly becoming the most downloaded free app in the UK and the US, Director Dominic Holden comments on the potential cybersecurity and data protection concerns, in The Lawyer.
Dominic’s comments were published in The Lawyer, 28 January 2025, and can be found here.
“DeepSeek’s privacy policy makes clear that they will collect your personal data, use it for a broad range of purposes and store it in China. This data is very valuable especially when provided at scale by thousands of users. The same concerns which gave rise to the proposed TikTok ban seem to apply here.
“With China’s national security laws obliging Chinese firms to share data with government agencies, users cannot know what will ultimately become of their data or how it might be used. Great care should be taken by users in deciding what to share with the platform.”
Director Dominic Holden comments on the potential cybersecurity and data protection risks of downloading RedNote, the social media platform which users are downloading before the potential US TikTok ban, in Yahoo! News.
Dominic’s comments were published in Yahoo! News, 14 January 2025, and can be found here.
“Like TikTok, RedNote is owned by a Chinese company which potentially raises the same privacy and data concerns that led to TikTok’s possible ban.
“Whilst the app itself does not appear to be dangerous, users concerned about their data privacy and how their data is to be used by RedNote, may be slow to adopt it until more is known
“There is also the further risk that as RedNote gains popularity, as a Chinese-owned company, it too may need to deal with the same regulatory issues TikTok has faced. Failure to do so could result in a future ban or legal action against RedNote.”
For more information on our technology disputes practice please click here
Director and Head of Property Litigation Abtin Yeganeh comments on a new provision of the Renters’ Rights Bill making it illegal to ask tenants to pay more than one month’s rent plus a six-week deposit up front.
Abtin’s comments were published in Metro, 10 January 2025, and can be found here.
Will the new legislation work?
So, why have landlords been allowed to ask for such vast amounts upfront until now?
As Abtin Yeganeh, Director and Head of Real Estate Disputes at Lawrence Stephens tells Metro, landlords often use these hefty deposits for peace of mind when, for example, tenants might not have a UK-based guarantor.
‘In order to tackle issues of bad credit and/or renting to overseas individuals, landlords often seek rent in advance as additional financial security. This can amount to six months’ rent in advance,’ Abtin details.
But as he believes, we’ll have to wait and see how it pans out – and whether landlords listen to the details of enforcement.
‘The outcome of these reforms is that tenants should, in theory, have more options when it comes to securing rental properties as they will not have to compete with prospective tenants who can pay a lump sum in advance.
‘However, given that landlords have a choice as to who they want to take on as a tenant, it remains to be seen whether the proposed changes have the desired effect.’
For more information on our Real Estate Disputes services, please click here
Leading dispute resolution firm, Lawrence Stephens, is pleased to announce the appointment of Roberto Francis as Senior Associate to its Real Estate Disputes team.
Roberto joins the firm with extensive experience acting for bridging and alternative lenders with a primary focus on secured and unsecured recoveries, which includes but is not limited to possession claims, receivership, insolvency and professional negligence.
Head of Real Estate Disputes, Abtin Yeganeh said “We’re delighted to welcome Roberto to our team. We’re certain that the breadth of his experience will enhance our service offering and enable us to continue delivering commercially focused, marketing-leading legal advice.”
Despite cyptocurrencies becoming more mainstream, recent commentary suggests that investors are still finding it hard to utilise these to purchase property in the UK. A recent Financial Times article highlighted the low appetite for sellers to accept cryptocurrencies. As a result, if purchasers want to use their crypto investments towards a property purchase, this usually involves converting the cryptocurrency into traditional or fiat currency – legal tender established by government regulation.
Much of the reluctance to accept funds derived from the disposal of cryptocurrency comes from its well-publicised association with criminal activity, in particular money laundering. Law firms have obligations imposed by the SRA in relation to checking sources of wealth and sources of funds for anti-money laundering (AML) purposes. Solicitors have a legal duty to ensure that any, and all, funds used within a property transaction have come from a legitimate source. They must therefore establish the original source of the funds, not the mere availability of funds in a bank account.
Establishing the legitimacy of funds generated through cryptoasset activity requires the instruction of an expert who is able to carry out a full report on the crypto proceeds being used. The content of this report includes documenting and reporting of the cryptoasset activity, including the initial ‘on-ramp’ into crypto (i.e. the exchange of traditional fiat money into cryptoassets), the purchase of cryptoassets, and the subsequent cryptoasset activity to the ultimate liquidation and ‘off-ramp’ from cryptoassets back into traditional fiat money which was then being used to make the purchase. This report can then form the basis on which the conveyancer can make a judgment as to whether it is safe to proceed with the proposed transaction.
There are currently few law firms with the required expertise to produce such reports. Buyers wishing to use crypto assets for property purchases should be especially aware of the need to establish legal source of funds when buying property at auction.
The Lawrence Stephens’ team was recently called in at short notice to assist a client who had purchased a property for £210,000 at auction. He had intended to fund the purchase by utilising proceeds mainly generated through investing and trading on cryptoassets. Our client had instructed solicitors in relation to the purchase. However, just two days before the notice to complete was due to expire, the client was informed that they did not have the necessary expertise and could not provide the required report on the source of funds coming by way of crypto. At this late stage, he was at risk of losing his 10% deposit.
The Lawrence Stephens’ team – comprised of Asim Arshad and Gunduz Misiri – were able to take on the instructions and were able to extend the notice to complete by three days. This gave the team enough time to complete a full crypto source of funds report to verify the funds coming by way of crypto and intended to be utilised for the purchase. We were pleased to effect the completion of the purchase within the agreed upon extended time.
Leading full-service law firm Lawrence Stephens is pleased to announce the appointment of dispute resolution specialist Dominic Holden, who joins as a Director in its Dispute Resolution department.
News of Dominic’s appointment was published in Commercial Dispute Resolution here and The Legal Diary here
Dominic specialises in substantial civil fraud claims, as well as complex data and hacking claims and multi-national, investigatory, enforcement and asset tracing work.
Prior to joining Lawrence Stephens, Dominic was Head of Litigation at Burlingtons in Mayfair.
Dominic advises on a broad range of commercial disputes and has particular expertise in matters involving complex and cross-border elements. Notable highlights include acting for aviation magnate Farhad Azima in his long-running and high-profile litigation against Ras-Al Khaimah’s sovereign wealth fund and its advisers, international law firm Dechert LLP and former partner Neil Gerrard.
Dominic also advises on breach of trust, professional negligence, contentious insolvency and director, shareholder and/or partnership disputes.
With a wealth of experience in litigation and disputes, Dominic’s appointment reflects the continued and exciting growth of Lawrence Stephens in recent years, while bolstering both the firm’s existing Dispute Resolution offering and cross-practice expertise.
Commenting on his appointment, Dominic said: “I am excited to begin the next chapter of my career with Lawrence Stephens. It is a pleasure to be working alongside a dynamic team of leading practitioners across a range of sectors, helping clients to navigate a range of high-profile and complex international disputes.”
Lawrence Kelly, Director in the Dispute Resolution department at Lawrence Stephens, commented: “We are delighted to welcome Dominic to the Lawrence Stephens team. His experience and tenacity complement our Dispute Resolution offering and broaden our cross-departmental expertise – allowing us to continue to offer our clients bespoke and integrated legal advice.”
Matt Green, Director and Head of Blockchain and Digital Assets and Technology Disputes at Lawrence Stephens, commented: “Dominic is a truly first-class litigator with a wealth of experience in technology disputes including litigation relating to hacking and data issues, I look forward to working with Dominic closely on a range of technology related matters at Lawrence Stephens.”
Senior Associate, Abtin Yeganeh, comments on landlords banning their tenants from working from home, as well as tenants’ protections in this area, in The Independent.
Abtin’s comments were published in The Independent, 07 July 2024.
“As a general rule, a landlord cannot stop a tenant from working from home as it would interfere with a tenant’s statutory right to quiet enjoyment of their property. The position is somewhat more complicated where a tenant seeks to run a business from their rental property. With that said, whilst landlords can seek to exclude a tenant’s right to work from home, The Small Business Enterprise and Employment Act 2015 (subject to several exclusions) provides that landlords cannot unreasonably refuse a tenant’s request to do so.”
The business landscape is continually evolving, with technology being a major catalyst for fostering progress, increasing capabilities, and maintaining a competitive edge.
Among the recent innovations capturing the interest of businesses is the rise of crypto assets and the blockchain technology that underpins them. Major brands such as Microsoft and Sotheby’s, as well as independent companies from travel agencies to cafés, are increasingly adopting crypto assets and harnessing their potential, seeking to position themselves to benefit immensely from these distinctive digital assets.
What’s in it for businesses?
One of the main appeals of crypto assets is the swift and transparent payment transaction mechanism that they provide. In an age where cash payments are on a significant decline, the ability to facilitate fast, transparent and secure payments is appealing to consumers and businesses alike.
Additionally, transactions with crypto often attract fewer charges compared to traditional payment methods. Crypto assets do not require intermediaries to facilitate transactions and the elimination of these intermediaries like banks and payment gateways in favour of a decentralised verification system (in other words, the blockchain) minimises the costs associated with traditional payment processing. Also, by merit of being exclusively digital, crypto assets negate the need for physical payment infrastructures such as card machines.
An undeniable upside for businesses adopting cryptocurrency payment is virtually zero risk of chargebacks. With every transaction confirmed and immortalised on the blockchain forming a secure, tamper-proof and transparent record, they cannot be reversed. Consequently, businesses no longer need to wrestle with drawn-out, expensive chargeback processes.
Adopting crypto assets also offers a broader customer outreach. By bypassing traditional financial institutions, businesses can access the 1.7 billion unbanked population globally, as well as the 1.2 million unbanked individuals in the UK. Allowing for crypto asset payment also caters to the growing population of crypto asset enthusiasts, granting a unique selling proposition amidst a competitive market.
Moreover, due to the borderless nature of crypto assets, such transactions do not require conventional currency conversions and can be sent to or from anyone in the world with a smart device and internet connection. This makes crypto assets an ideal form of payment for businesses that wish to expand their operations into new jurisdictions, without the usual friction points involved in optimising cross border payments.
What are the challenges for businesses?
Whilst there are a number of advantages for businesses, integrating crypto assets as a form of payment is not without its risks. One such risk comes from the fact that crypto assets are extremely volatile, and it is not unheard of to have massive fluctuations in a crypto assets value over a relatively small time frame of days and hours. This volatility can present challenges for businesses in being able to predict how much it will generate from crypto asset payments, and it can also expose the business to losses if the value of its crypto assets falls. In the same vein, it can also present opportunities for gains if there is an increase in the price action of a crypto asset.
For example, a retailer may sell an item for 0.035 Bitcoin (BTC), which at the time of writing is around £766. In the days after the sale the value Bitcoin may increase, such that 0.035 BTC is now worth £800. On the flipside, the value of BTC may decrease, such that the 0.035 BTC is now worth £735.
Another challenge is security. Whilst crypto assets are secured utilising complex cryptographic algorithms, they aren’t invincible against cyberattacks, phishing or fraudulent schemes. Thus, businesses using crypto assets need to be proactive in establishing robust cybersecurity defences and countermeasure procedures.
The developing regulatory environment around cryptocurrencies presents another challenge. As the legislative and regulatory landscape is still maturing, businesses adopting crypto assets as a form of payment may need to comply with unforeseen regulatory requirements and make an effort to stay informed of ongoing developments in this area.
However, with diligent planning and careful strategies, these challenges and risks can be substantially offset and mitigated.
What must businesses consider?
For businesses considering crypto asset integration, an effective policy and strategy should take into account the specific nature and operation of the business, its goods/services, geographical scope, and clientele. Particular consideration should be given the following points:
How Lawrence Stephens can assist with your crypto challenges
While venturing into the world of crypto assets does bring its set of challenges and intricacies, the potential benefits are substantial. As with any business decision, prudent planning, accompanied by knowledgeable legal consultation, is key to ensure regulatory compliance and adept risk management.
At Lawrence Stephens, our team is adept at assisting diverse businesses in harnessing the potential of crypto assets. With our bespoke legal insights, we ensure your cryptocurrency adoption journey is seamless, safeguarded, and aligned with the developing digital finance sector.
With the increasing adoption of crypto assets, it is inevitable that we will see a rise in interactions between this sector and more traditional asset markets, such as real estate.
An increased awareness of crypto assets, and their growing availability over the past decade have presented both individuals and enterprises with access to a risk-on environment, characterised by high risk and reward profiles. Consequently, numerous investors have experienced significant returns on their initial, sometimes modest, investments. One notable trend we have observed is the convergence of crypto wealth with the traditional real estate market, particularly in the form of crypto gains being utilised towards real estate acquisitions.
There are primarily two methods by which individuals and businesses are using crypto wealth to enter the real estate market.
The first and most common approach involves utilising the fiat proceeds from crypto gains to cover part or the whole cost of a property purchase. This approach aligns closely with established conveyancing practices.
The second approach entails the direct use of the crypto assets themselves to facilitate the property purchase. The property’s purchase price, whilst still being pegged to a fiat value, is not settled in fiat currency but rather in an agreed-upon amount of specified crypto assets.
Both approaches have their own complexities and advantages, including risk tolerance, market conditions and legal considerations.
Using fiat proceeds of crypto assets
The approach of using fiat proceed of crypto gains in property purchases is a method which strongly resembles established conveyance process, albeit with some nuances in the process brought on by additional financial planning and legal considerations. This is by far the most common method by which parties are utilising cryptoassets in order to purchase property.
Generally, the process will involve several key considerations.
Conversion to fiat
The first step of this process is to convert crypto assets comprising part or the entirety of a crypto assets portfolio into a fiat currency, as the British Pound Sterling.
This will usually occur through a centralised exchange and, given the volatility of the crypto markets, timing may be an important consideration.
Parties will often aim to convert their crypto assets at a peak value, so as to maximise the return into fiat. If substantial sums are being converted and off-ramped, then it is likely that it will be done in tranches and using multiple centralised exchanges to get the best rates and mitigate slippage.
It is also possible to convert cryptocurrencies into fiat currencies using OTC trades, facilitated by a specialised broker.
Banking considerations
Whilst banks and other financial institutions are undoubtedly more familiar with crypto assets than they were several years ago, it is still important to note that not all financial institutions are crypto friendly.
As such, when off-ramping substantial sums from an exchange to a bank account, it is vital to consider whether the bank in question is willing to accept the funds into the account, and buyers must be prepared for the bank to make enquiries about the source of funds in line with standard anti-money laundering and know-your-customer requirements.
Legal and tax implications
A conversion between crypto assets (e.g. Bitcoin to USDC) or a conversion from crypto assets into fiat is also likely trigger a tax liability, and crypto investors may be subject to capital gains tax or income tax, depending on the nature of the activity.
Solicitors assisting with the purchase of property in such cases will be aware that they will be taking these fiat funds into their account in furtherance of the purchase. As such, they will have a responsibility to determine that these fiat proceeds of crypto assets activity is genuine and not illicit funds or an attempt to launder money.
In other words, the solicitor must be able to verify the source of funds – a key consideration due to the sector specific knowledge that this requires. Before instructing solicitors with the conveyance of the intended property, potential buyers should ensure they are comfortable and able to verify source of funds coming by way of crypto assets.
At Lawrence Stephens, our dedicated crypto asset and blockchain team within the firm works closely with our conveyancing department to be able to review and verify source of funds deriving from crypto assets activity seamlessly.
Application of the funds
Depending on how fiat funds are intended to be applied, if a cash amount is being used to cover the entire cost of the property, then standard conveyancing procedures will apply to the rest of this process.
However, if funds are intended to be used as a partial deposit, with the rest of the purchase price to be financed through a mortgage, lenders will likely require an overview of your finances including crypto assets gains.
Completion
Once the parties arrive at the completion stage, the buyer will transfer the fiat funds to their solicitors, as will the mortgage provider if applicable. The solicitors on either side will then ensure the timely transfer of funds and completion of formalities to record the transaction and change of ownership of the property.
Using crypto assets to purchase property
Whilst certainly a less common route to purchase property, it is also possible to utilise crypto assets themselves for a property purchase. Whilst this route to acquire property comes with additional considerations, complexities and advantages, it can often be a desirable option particularly for those with large crypto portfolios.
Agreement with seller
One of the main considerations and challenges with such an approach is finding a seller who not only has a property to sell that fits the requirements of the buyer, but is also willing to accept crypto assets as a form of payment.
Much like any other property purchase, parties will need to arrive at an agreed figure for the purchase price of the property and, even though cryptoassets will be used in the transaction, the purchase price agreed must be agreed in fiat currency. This is not just crucial for contractual clarity between the parties, but it is also important for the calculation of Stamp Duty Land Tax (SDLT) liability, if applicable.
Agreeing the crypto asset
Both parties will also need to agree the crypto assets to be used in the transaction, and this will require due diligence on the assets involved. It may also be necessary to the current regulatory environment to ensure there are no restrictions on using the crypto assets of choice. If a particular crypto assets was regulated, for example, then strictly speaking it would technically not be permitted to deal in the same without regulatory approval.
From the seller’s perspective, they will have undoubtedly have additional considerations for the crypto assets to be used, and may likely only want to deal in a crypto assets that has sufficient liquidity.
For example, assuming the purchase price of the property is agreed in the sum of £800,000, the parties will then need to agree which crypto asset (or assets) are to comprise the purchase price. In this example, we will assume that the parties agree to transact in Bitcoin and, as of September 2023, the value of 1 Bitcoin is approximately £20,000.
Due to the volatility of crypto assets, it is not uncommon for parties to reach their own agreed upon conversion rate for the crypto assets being used. In this example, if we assume that the parties agree that the Bitcoin used for the purchase will be valued at £19,500, the buyer will have to pay the seller 41.02 Bitcoin.
Due to the nature of using crypto assets in such a transaction, separate agreements may be required that addresses the particular characteristics of these assets. For example, given the volatility of crypto assets, both parties assume a market risk until the transaction is completed. To mitigate this, specific clauses can be inserted into agreements to address scenarios where the crypto assets value changes dramatically before completion.
Specialised mechanisms or escrow type services for the actual transfer of the crypto assets would also likely need to be agreed upon and catered for in a specific agreement. In typical transactions, buyers would usually send the purchase monies to their solicitors, who would then forward it over to the seller solicitors. In a crypto transaction, alternative mechanisms would need to be utilised to ensure that the transaction occurs properly, and payment is sent and confirmed to the relevant parties so subsequent steps in the conveyance procedure can take place.
Solicitors with expertise in crypto assets transactions are crucial in such instances, to ensure legal compliance and clarity.
Post-completion formalities
After the transaction is complete, the usual formalities such as land registration will follow, and these may require special annotation to indicate the use of crypto assets in the purchase. The land registry, in the past, has recorded the sale price of property in crypto assets.
SDLT may also be applicable and will usually be calculated in relation to the value of the crypto assets on the day of completion, as evidenced by reputable data sources.
From the seller’s perspective, they will want to ensure that they can continue to securely hold and access the crypto assets or convert them into fiat, depending on their intentions. Oversight in this regard could lead to difficulties in them accessing the proceeds of the sale.
Conclusion
The purchase of property using the fiat proceeds of crypto assets, or crypto assets themselves is not only feasible but can also be an attractive option for both buyers and sellers.
Such transactions are accompanied by a unique set of legal considerations that require specialised knowledge and understanding of the crypto assets sector; from due diligence on the crypto assets used and their liquidity, to understanding the additional legal mechanisms required to ensure a compliant and clear transaction, the process necessitates an expert legal perspective.
Our crypto assets team is equipped with specialised knowledge in the crypto asset sector, enabling us to guide clients through each step of this innovative transaction method. If you are contemplating diving into the world of property purchases via crypto assets, we are here to assist and advise.
In the age of the Digital Revolution, terms such as ‘crypto assets’, ‘cryptocurrency’, ‘tokens’, and ‘blockchain’ have become increasingly common in everyday conversations, as well as in financial, technological, and legal discourse. Despite their growing presence, adoption and relevance, misconceptions and ambiguity continue to surround this novel asset class.
Perhaps these misconceptions and ambiguity can be explained by the nuances in the terminology, which often amalgamate traditional financial and technological terms.
The terms ‘crypto assets’, ‘cryptocurrency’, and ‘crypto tokens’ are often used interchangeably, yet each has its own specific implications and considerations.
Whilst ‘cryptocurrency’ is perhaps the most commonly recognised catch-all term for this group of assets, it is somewhat of a misnomer as they do not possess all of the properties of a traditional currency (also called ‘fiat currency).
Fiat currencies are typically used as a medium of exchange for goods and services. They can also be used as a store of value and as a unit of account. They are most often issued by central banks or monetary authorities.
In contrast, cryptocurrencies are not yet widely accepted as a medium of exchange, and their inherent volatility makes them unsuitable as a unit of account. Cryptocurrencies are said to be ‘decentralised’ as they are not issued by or subject to governments, central banks or monetary authorities. However, a point should be made to contrast this with Central Bank Digital Currencies (CBDC’s), which are digital forms of fiat currency issued by central banks, and are often mentioned in the same discourse as cryptocurrencies.
For these reasons, the term ‘crypto assets’ is a more accurate catch-all term that we choose to adopt.
What are Crypto assets?
Essentially, they are digital assets that use cryptography for security, and utilise a form of distributed ledger technology, such as a blockchain, to record and store transactions. The wide definition of ‘crypto asset’ adopted in the UK also encompasses crypto assets such as NFT’s.
Blockchain is the underlying technology that enables the secure and decentralised functioning of crypto assets. A blockchain is a type of digital ledger that is distributed across a network of computers known as nodes, where no one single entity has control of the data.
Each block contains a list of transactions which are cryptographically linked to the previous block, which functions to create a secure and immutable record of transactions.
The decentralisation aspect of crypto assets is one of their most appealing design features. It means that they are not subject to governmental or monetary policy interference, nor are they susceptible to any single point of failure, and it also enables a number of use cases for crypto assets.
Popular and well-known crypto assets include Bitcoin, Litecoin, Ether, and Cardano, although there are now tens of thousands of crypto assets in existence.
Treatment of cryptoassets in the UK
As the adoption of crypto assets continues to grow, they have presented novel and unique challenges to governments, monetary bodies, and international regulators. One of the main challenges in regulating crypto assets is that they are global in nature and exist without borders. As such, different national regulators have taken inconsistent approaches towards their treatment of crypto assets, and it is very much a sector that is in a near-constant state of regulatory and legislative flux.
Crypto assets are not subject to any blanket prohibition or ban in the UK, in contrast to what has been seen in other parts of the world such as China. Rather, the UK government and regulators have openly recognised the substantial benefit and use cases of crypto assets and blockchain technology, which has made the UK a ‘friendly’ jurisdiction for start-ups and established companies alike, looking to develop, create, implement, and explore this space.
Aside from an outright ban on the marketing, distribution or sale of crypto-derivative products to retain consumers, there are no specific prohibitions on the use, purchase or trading of crypto assets in the UK.
The legal status of crypto assets in the UK is that they are treated and viewed as property. While there is continuing academic and legal discussion on this classification, which does not neatly fit with crypto assets, the view that crypto assets constitute property has been accepted several times by the High Court. This has provided much-needed legal clarity as to the status of cryptoassets, and how they are to be treated under existing laws and frameworks. This approach by the High Court has meant that England and Wales have emerged as a favourable forum for resolving crypto assets disputes, as the legal clarity provided allows for the application for well-established laws to this emerging asset class.
Are cryptoassets regulated in the UK?
The UK has positioned itself as a key participant in shaping the regulatory landscape for crypto assets, with bodies such as the Financial Conduct Authority (FCA) taking steps to define and further classify crypto assets.
Broadly speaking, the current FCA regulatory regime refers to crypto assets by way of a token taxonomy, which then dictate whether a cryptoasset is regulated or unregulated.
Security tokens and e-money tokens are regulated by the FCA, whereas exchange tokens and utility tokens are considered unregulated tokens.
A security token essentially grants the holder financial rights, akin to a share or a bond, and crypto assets which exhibit characteristics and functions of a security token would be regulated.
The FCA takes a substance over form view in relation to crypto assets. In other words, if a crypto asset has the substance of a traditional financial instrument, regardless of whether it is in digital form, it will fall under the FCA’s regulatory ambit.
Crypto assets lacking the characteristics of a traditional financial instrument, including those like Bitcoin, Ether, and other various utility and exchange tokens, are not currently regulated. It is also prudent to note that even if a crypto asset is unregulated by the FCA, certain activities relating to or involving those crypto assets may trigger other regulatory regimes.
The prevailing sentiment appears to be indicating increasing regulation and oversight into the crypto sector, driven by concerns in relation to consumer protection, stability of the financial markets, and various financial scandals that have happened within the crypto sector in recent years. There is an ongoing consultation which proposes to bring crypto assets within the scope of existing legislation by considering them as a specified investment under the Financial Services and Markets Act (Regulated Activities) Order 2001. The consultation process remains underway, and its outcomes will significantly influence the future regulatory framework for crypto assets.
Conclusion
The landscape of crypto assets and their regulation is complex, rapidly evolving, and varies across jurisdictions. The implications for individual investors and crypto asset enterprises are substantial. The complexities of crypto assets covered in this article only scratch the surface, and it is essential to seek out expert advice in order to ensure that guidance is tailored to one’s situation.
