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Matt Green comments on the rise of Big Tech lawsuits in CDR Magazine

Posted on: January 7th, 2025 by Natasha Cox

Head of Blockchain and Digital Assets and Technology Disputes Matt Green comments on the rise in litigation against Big Tech companies, and explores how regulation must adapt to provide better protection and recourse for consumers.

Matt’s comments were published in CDR Magazine, 6 January 2025.

“There have been very few useful regulatory protections for consumers, although attempts have been made under financial promotions regimes.

“There is a severe lack of protections for consumers broadly when dealing with crypto assets, particularly at retail exchanges. Under recent case law, the trend is to treat crypto exchanges like banks, which themselves are governed following hundreds of years of banking law with consumer protection in place. 

“However, these laws cannot be applied to crypto exchanges given technical and operational differences. On that basis, crypto exchanges are given wide protections for how they custody and pool assets (tilting in favour of their own interests), but consumers are left without recourse where those exchanges are unwilling to help.”

For more inforamtion on our regulatory services and crypto practice, please click here

Ricardo Geada explores the ban on disposable vapes in The Times

Posted on: November 3rd, 2024 by Hugh Dineen-Lees

Director and Head of Regulatory Solutions Ricardo Geada explores the recently announced ban on single-use disposable vaping products, and argues that it may cause non-nicotine products to be caught in this regulatory dragnet.

Ricardo’s article was published in The Times, 31 October 2024, and can be found here.

Last week, the government confirmed that the sale and supply of single-use disposable vapes will be banned in England & Wales. The ban, which will come into force from next June, was inevitable, and the devolved nations of Scotland and Northern Ireland are set to follow suit.

Its stated intention is to protect children’s health and to prevent environmental damage. Some aspects are positive. For example, limiting flavours and colours that appeal to under 16-year-olds is a sound approach to minimising underage user numbers. But however well-intentioned, the ban will probably lead to an increase in both the sale and use of illicit, unregulated vaping products. Illegal vapes are much more likely to contain other harmful chemicals, which could, in turn, create serious public health issues.

Single-use vape legislation, first announced in January by the previous Conservative government, was not enacted before the July general election. The new Labour government then picked up the baton. But simply because cross-party consensus exists in principle does not automatically make legislation right in practice. Improper use could also be limited by implementing better enforcement on trading standards to prevent children under 16 having access to vapes.

Manifestly, the most effective way to prevent the unsafe use of vaping products is to create a robust regulatory framework that can be properly enforced by trading standards, unfortunately they like many other government departments lack the adequate funding and resources required. 

Nonetheless, measures must be taken to address safety and social concerns surrounding disposable vapes, such as underage use and potential fires resulting from the lithium-ion batteries used in them, as well as the adverse environmental effects of litter and the lack of sustainability in single-use products. According to Defra, five million single-use vapes were either littered or thrown into general waste every week last year.  

To the extent that it is both practical and financially feasible, companies that sell single-use vapes may have to retrofit their products in order to make them compliant with the new regulations.

But there are other consequences: the single-use ban extends to both nicotine and non-nicotine-based products. It therefore includes Cannabidiol (CBD) vapes which do not contain nicotine and are non-addictive. In fact, the reverse may apply, CBD vapes are heralded by some advocates for their potential and varied health benefits.

Although CBD vaping has been on the rise in recent years, unfortunately for companies that manufacture CBD vapes, their sector is still relatively small and does not have the financial resources of big tobacco. So, for many of these CBD companies it may prove difficult to access the necessary finance to re-engineer their existing products in order to bring them in line with the imminent regulations.

Only time will tell whether this ban will have the desired effect or if it will simply open up untested and harmful vape products on the illicit market.

Ricardo Gaeda discusses the deregulation of the cannabis market in The Times

Posted on: June 6th, 2024 by Yvonne Uzoka

Ricardo’s article was published in The Times , 6 June 2024, and can be found here.

In the biggest shake-up of federal drug policy for more than 50 years, the US Drug Enforcement Administration recently announced plans to reclassify cannabis as a less dangerous drug. The move came as a belated response to even greater liberalisation that has occurred over many years at a state level: since California became the first state to legalise cannabis for medical purposes in 1996, a further 37 US states have followed its example. After several states decriminalised cannabis in the 1970s, Colorado and Washington became the first two states to legalise the drug’s recreational use in 2012. Today, cannabis is legal for medical use in 40 states, with recreational/adult-use legal in 24 states. 

Although federal reclassification would not automatically result in national legalisation, it could result in lower tax rates for the cannabis industry and less restrictions on scientific research. In anticipation of cannabis’ wider medical usage and reduced regulation, leading to a number of listed cannabis companies’ stocks have reached new highs.

The momentum of potential investor interest will inevitably extend to the UK and Europe as companies seek to expand their cannabis operations. This will however depend upon a comparable shift in legislation and regulation.

In the EU, the legislative pendulum has already begun to swing. Cannabis has been available for recreational use in Amsterdam’s coffee shops for decades, as part of the Dutch policy of toleration.  More recently, as at 1 April 2024, Germany decriminalised personal possession and allowing the cultivation of up to three cannabis plants at home. Notably, most EU countries already permit, or are considering to allow, the medical use of cannabis or some form of cannabinoids.

However, progress on patient access in the UK continues to be painfully slow. Despite the law being changed in November 2018 to allow the prescribing of unlicensed cannabis-based products for medicinal use (CBPMs),  there are only a handful of prescriptions for CBPMs made available through the NHS, mainly used for the treatment of children with epilepsy. The vast majority of CBPM prescriptions are made through private clinics, meaning only those able to afford private medical care can obtain the medicines while their less affluent peers are denied access.

The current government has shown little appetite to confront the issue in parliament while Labour Party leader Sir Keir Starmer has repeatedly made it clear that he has “no intention” of changing the UK drug laws if his party wins the next general election.

It is therefore evident that a long road to legislative reform may lie ahead.

But if the UK is to keep pace with its global counterparts in medical cannabis regulation, it is vital that the next government reforms its approach to medicinal cannabis – not only to help those with chronic health conditions, but also to enable a viable new industry to be established without being hampered by unnecessarily restrictive regulation.

Ricardo Geada to moderate panel about novel foods at ICBC Berlin

Posted on: April 9th, 2024 by Maverick Freedlander

Director and Head of Regulatory Solutions Ricardo Geada will moderate a panel at ICBC Berlin about the implementation and enforcement of the regulation of foods with cannabinoids in the EU.

The panelists, the European Medicinal Cannabis Association’s General Secretary Sita Schubert and Founder of Cannactions Consulting Ltd Constant Ma, will discuss complex regulatory frameworks involving regional regulations and overarching EU guidelines, noting how novel foods are treated differently within the European Union.

They will highlight disparate perspectives, as well as harmonization and authorization efforts in the EU, and the difficulties in establishing novel food status for hemp food ingredients and cannabinoids, including persistent challenges related to health claims, novel cannabinoids and inappropriate marketing.

The panel, titled ‘(Not) on the plate: EU’s Dilemma with Cannabinoids and Novel Food’ will take place at 11am CET on Tuesday, 16 April at the Estrel Hotel in Berlin.

Click here to learn more and register for the conference.

Lawrence Stephens’ Regulatory Solutions team collaborate on Extracting Opportunities guide

Posted on: January 31st, 2024 by Maverick Freedlander

Lawrence Stephens’ Regulatory Solutions team is proud to have collaborated with SW4 Partners and Artemis Growth Partners on ‘Extracting Opportunities’ – a guide exploring the dynamic and rapidly evolving extract-based medical cannabis market in Europe.

This report dives into the transition from traditional cannabis forms to advanced products such as tinctures, capsules, creams, and vape cartridges, underscoring their pivotal role in broadening market appeal and delivering targeted medical benefits.

A must-read for anyone seeking opportunities in the medical cannabis sector, ‘Extracting Opportunities’ includes a comprehensive understanding of the industry landscape and discusses the prospect of extract-based medical cannabis in Europe, combining detailed analysis with engaging content to illuminate both the complexities and opportunities within this burgeoning sector.

Key Discoveries:

The findings of this report attest to the significant growth of the medicinal cannabis market, driven by the evolving regulatory landscape and increasing acceptance. The report underscores the need for standardisation and high-quality inputs in pharmaceutical manufacturing, pointing out the potential for market expansion fuelled by advancements in research and clinical trials.

  • Diversification of the Market: Extract-based products are reshaping the consumer base, attracting new demographics.
  • Tailored Medical Solutions: These products are increasingly being developed to address specific medical needs, bolstering their therapeutic impact.
  • Precision in Dosing: Consistent potency is revolutionising prescribing practices, enabling more precise treatment.
  • Focus on Quality: Top-grade ingredients are necessary for the development of pharmaceutical-quality products.
  • Growth and Opportunities: The European extract market is growing rapidly, and continues to present ample opportunity for expansion.

‘Extracting Opportunities’ delivers a nuanced view of the regulatory and market trends across key European countries including Germany, the UK, Portugal, and Denmark.

Featuring pivotal companies such as Somai Pharmaceuticals, Grow Group, Valcon Medical, and Panaxia, and details their innovative approaches and contributions to the market, these insights provide a glimpse into the diverse and strategic efforts driving the growth of extract-based medical cannabis products in Europe.

For further information, and to register your interest in a free copy of the report, click here.

Asim Arshad and Ricardo Geada discuss crypto’s legitimate use in The Times

Posted on: November 23rd, 2023 by Maverick Freedlander

Senior Associate Asim Arshad and Director Ricardo Geada discuss the importance of crypto and its legitimate use cases, while contextualising the technology’s misuse, in The Times.

Asim and Ricardo’s article was published in The Times, 23 November 2023, and can be found here.

It is critical for regulators, officials and the public at large to differentiate between the technology of cryptoassets and its potential misuse. A broad-brush approach due to the actions of a few is misleading, short-sighted, and indicates a limited understanding of the technology, thus hampering its development as a powerful force for progress and financial inclusion.

Collaboration should be key in any strategy to combat crypto’s misuse, and UK authorities should more actively engage with other regulatory bodies overseas in order to share insights and intelligence to address crypto-related crimes, while fostering the growth of legitimate crypto businesses. The misuse of cryptoassets should not overshadow its broader, legitimate applications.

Contrary to common misconception, it is crucial to understand that most blockchains are inherently pseudonymous, rather than anonymous. Every transaction on public blockchain is recorded on a transparent ledger, making the transaction history traceable. This traceability can serve as a powerful tool for law enforcement. This perpetual audit trail enables authorities to trace illicit activities back to their source.

The UK’s ambition to position itself as a global hub for crypto innovation is commendable, and is one of the main reasons that growth of crypto in the UK has far outpaced the likes of the US, Germany and Japan in recent years. However, striking a balance between robust regulation and fostering innovation is crucial. Overly stringent regulations, arguably like we are seeing with the new cryptoasset financial promotions regime, might stifle the growth of the sector, pushing innovators and investors towards more accommodating jurisdictions instead.

The emergence of crypto-related crimes underscores the need for a comprehensive educational push. Regulatory bodies, in conjunction with the industry itself, need to work towards educating law enforcement agencies, financial institutions, and the general public in what is a nascent and constantly developing technology.

It is also crucial to recognise that the relevance and utility of cryptoassets differ across global contexts. For someone in a developed, politically stable country, the urgency or use case of crypto may not be plainly obvious. However, for individuals in countries with economic instability, hyperinflation, or restrictive financial systems, crypto offers a lifeline and can serve as an alternative financial system, providing financial inclusion and allowing people to preserve their wealth against devaluing local currencies. Dismissing crypto merely based on their irrelevance to certain regions or occasional misuse overlooks their broader potential and global impact.

Understanding and leveraging the technology of cryptoassets and their underlying blockchains require a nuanced approach that recognises their potential use cases as well as the need for adequate regulation to mitigate misuse.

Ricardo Geada speaks on cannabis and tobacco synergies at CB Expo Dortmund 2023

Posted on: October 23rd, 2023 by Maverick Freedlander

Last month, Director and Head of Regulatory Solutions Ricardo Geada spoke as part of a panel of experts on the intersection between the cannabis and tobacco industries at CB Expo Dortmund 2023.

Speaking alongside Lily Temperton (Tocar Strategic Advisors/ Hanway), Paul Furfaro (Village Farms International), Deepak Anand (Vancouver Island University) and Nick Kenny (KBS), Ricardo discussed comparisons in trade, production, and taxation across these two sectors, as well as what lessons the cannabis industry can learn from the tobacco industry.

Click below to listen to Ricardo’s appearance in full.

Ricardo Geada discusses the regulation of HHC in Analytical Cannabis

Posted on: July 12th, 2023 by AlexT

Director and Head of Regulatory Solutions Ricardo Geada explores how the rise of HHC and synthetic cannabidiol products has created an abundance of issues for the CBD market.

Ricardo’s article was published in Analytical Cannabis, 11 July 2023, and can be found here.

Several weeks ago, France became the latest country to ban the use of the synthetic cannabis compound hexahyrdocannabinol (HHC). Operators in the cannabis market are coming under increased regulatory pressure with regard to their products. France’s legislative action makes it the 11th European state to either ban or regulate the new substance, which can be synthesised from CBD extracted from low-THC cannabis plants and is reported to have similar psychoactive effects as marijuana’s THC.

HHC’s swift rise to prominence has created an abundance of issues for the CBD market, with little research having so far been carried out with regard to its potential health risks and psychoactive effects. As such, a growing number of jurisdictions have erred on the side of caution and moved to either limit or ban the use of HHC until more is known about its properties and effects. CBD operators have found themselves the subject of raids to seize their HHC products, impairing them financially as well as exposing them to the risk of legislators’ sanctions for their actions.

As the regulatory net tightens around the world, CBD producers and distributors are being sent a strong signal that operating in the previously grey area of HHC is rapidly becoming a greater risk. For the time being, they may be better placed pausing production of new and synthetic cannabidiol products until the rules and laws governing its use becomes clearer, especially given the strength of the political drive to curtail its consumption.

French MEP Aurelia Beigneux told the European Commission earlier last month that HHC was “flooding our continent”, questioning whether the Commission planned to ban the substance across all member states as a way to end the “legal limbo” from which it currently benefited. She noted what she claimed were HHC’s many adverse effects, including its causing of anxiety, depression and damage to the neurological and cardiovascular systems. While the extremely low level of THC in HHC means that it does not have the same deleterious psychotropic effects as cannabis, many politicians have called for it to be added to the EC’s list of addictive substances due to the volume of reports of users’ addiction to the drug.

Opponents of a full ban of HHC point to the fact that the simplicity of its synthesising from CBD means that illicit market production would soar in the event of prohibition, leading to associated health risks for consumers, as wholly unregulated and unmonitored products are distributed by unscrupulous dealers. However, there appears to be a general consensus that, even if an outright ban is not appropriate or viable, there must still be a strong set of rules heavily limiting the production and sale of HHC in the near future.

Such vehement opposition to HHC has been replicated across the continent, indicating that the crackdown on the substance will continue to gather pace in the coming months. Regulators are clearly concerned about the ease with which CBD can be synthesised into HHC and other new variants, none of which yet appear in the listed category of cannabinoids in many countries due to their novelty.

As a result, many current regulatory frameworks do not govern the use of HHC in the way that CBD and cannabis are regulated, which has led many producers to take advantage of the vacuum in the meantime. However, the push for thorough testing of HHC will likely see the loophole closed in increasing numbers of jurisdictions in the short to medium term, giving pause for thought to any operator considering remaining in the HHC marketplace.

The fact that France has opted to ban HHC is also noteworthy against the backdrop of its previous stance towards CBD. At the end of December 2022, the French Council of State overturned a ban on the sale of CBD flowers in the country, stating that a general and absolute ban on the marketing of the product was “disproportionate”, on the basis that the THC content of the dried flowers was less than 0.3%. The CBD industry welcomed the move, seeing it as a positive sign of increased acceptance of their products. But France’s latest legislative change appears to have dashed operators’ hopes once again.

Given the febrile political climate, rigorous testing of HHC and its variants is guaranteed to be carried out by regulators and medical experts around the world. CBD operators should welcome such a move so that they are afforded clarity as to what they can and cannot produce, but more importantly understand whether such variants pose any health risks to consumers, rather than take the various risks of continuing to operate outside of regulatory boundaries on the proviso that HHC and other related substances are not yet effectively defined in law. In doing so, the cannabis and CBD industry would be better regarded on the world stage.

Ricardo Geada explores medicinal cannabis and the issues surrounding patient access in The Times

Posted on: June 15th, 2023 by AlexT

Director and Head of Regulatory Solutions Ricardo Geada argues that millions of Britons are being denied access to medicinal cannabis due to unnecessarily restrictive guidelines around prescription, in The Times.

Ricardo’s article was published in The Times, 15 June 2023, and can be found here.

Despite the Government’s legalisation of medicinal cannabis in November 2018, patient access remains shocking half a decade later, to the detriment of millions of Britons whose health conditions would benefit greatly from such treatments. While the law change was a step in the right direction, in practice guidelines continue to be unnecessarily restrictive.

Cannabis regulation in the UK is a complex and evolving topic, particularly in the aftermath of Brexit. However, despite the challenges legislators face, there is no justification for the status quo to persist any longer, in which countless Britons are prevented from accessing life-changing treatments in the form of cannabis-based products for medicinal use (CBPMs).

At present, there are only a handful of prescriptions for CBPMs made available through the NHS, and are mainly used for the treatment of children with epilepsy. The vast majority of CBPM prescriptions are made through private clinics, meaning only those able to afford private medical care are able to obtain the medicines while their less affluent peers are denied access.

The National Institute for Health and Care Excellence (NICE) guidelines underpinning the prescribing of CBPMs are inherently flawed, since they are written as though cannabis is a pharmaceutical product, when it is a botanical product. As such, they focus mainly on double-blind placebo-controlled studies, and ignore real-world evidence in the form of thousands of studies proving the benefits of CBPMs to a wide range of patients.

Sufferers of chronic health conditions who would be greatly aided by CBPMs are further restricted from access by the fact that only medical practitioners (doctors) on the General Medical Council (GMC)’s specialist list can initiate such prescriptions. GPs are unable to initiate but can write follow up prescriptions. This adds a superfluous layer to prescribing for so many ‘GP conditions’ such as pain and anxiety, sleep issues and appetite problems – all of whom could benefit from CBPM prescriptions.

The Government must refresh its approach to the medicinal cannabis sector, not only to help people with chronic health conditions, but also to establish a viable new industry which is currently constrained by a regulatory minefield. Until CBPMs are allowed to be prescribed on a far less restrictive basis, demand will remain suppressed, and thus potential entrants to the market are highly disincentivised to invest time and money into product development and distribution.

In the absence of a regulatory overhaul, hundreds of thousands of patients denied access to CBPMs will continue to turn to black market cannabis to treat their conditions, which often contains contaminants and pesticides and is not tested for safety. Instead of exposing patients to health risks as well as to the risk of prosecution, NICE should urgently rethink its approach to CBPMs and allow access to all those patients in need.