Topic: Cryptoassets cryptocurrencies stablecoins and cbdcs

Sean Murphy and Hannah Meakin unpack the evolving UK crypto regulatory landscape and what the new government’s plans are going to mean for the industry.

As 2024 draws to a close, Hong Kong has delivered on its promise by unveiling its draft Stablecoins Bill, a comprehensive framework for regulating fiat-referenced stablecoin issuers in Hong Kong.

In Southgate v Graham [2024] EWHC 1692 (Ch), the High Court considered an appeal concerning a loan agreement involving cryptocurrency.

On 25 November 2024, HM Treasury published the text of a speech by the Economic Secretary to the Treasury, Tulip Siddiq MP, outlining the Government’s approach to tokenisation and regulation. In the speech, which was delivered at the Tokenisation Summit on 21 November 2024, Ms Siddiq discussed the initiatives the Government is taking forward in the digital asset ecosystem, including the Digital Securities Sandbox and the wider cryptoasset strategy.

On 3 October 2024, the Broadcast Committee of Advertising Practice (BCAP) published a new rule explicitly banning advertisements for certain types of cryptoasset products from being broadcast to mainstream, non-specialist audiences.

In D’Aloia v Persons Unknown [2024] EWHC 2342 (Ch), the High Court has given judgment in a claim against a cryptocurrency exchange for return of fraudulently misappropriated cryptocurrency. The Court found in favour of the exchange on the basis that the cryptocurrency could not be traced to it.

In this webinar, our global crypto regulation team will delve into the critical aspects of Markets in Crypto-Assets Regulation (MiCA), a new landmark piece of European legislation that is due to become applicable at the end of 2024, and explain its importance to crypto-asset firms operating in Asia but looking to provide services to EU clients. Whether you’re a crypto-asset service provider, issuer, or investor, this session will provide valuable insights on navigating this broad-ranging regime. We will also use this session to flag key cross-border issues in the upcoming UK regime for crypto-assets.

It was a pleasure to attend the latest series of policy roundtables hosted by the Financial Conduct Authority as the industry looks to collaborate on the possible routes forward regarding the expansion of the UK regulatory regime to trading venues and other cryptoassets “intermediaries”.

When talking about digital assets, how much is saying too much? How much is saying too little? Did what you say ultimately matter? Recent court decisions arising from the purchase and sale of digital assets have grappled with liability claims posing such questions about information that had been stated or omitted.

In a notable victory for the US Securities and Exchange Commission (SEC) in its closely-watched enforcement action against Coinbase over its crypto-assets activities, a New York federal court on March 27, 2024, rejected nearly all of Coinbase’s challenges to the SEC’s charges against it and cleared the case to proceed. SEC v. Coinbase, Inc., No. 1:23-cv-04738-KPF (S.D.N.Y. Mar. 27, 2024) (Katherine Polk Failla, J.). The court held that the SEC’s allegations about Coinbase’s crypto transactions were sufficient for them to “suffice to constitute ‘investment contracts’ under the three-pronged Howey test” and thus be subject to the federal securities laws and the SEC’s enforcement authority. The SEC’s victory was not total, however, as one specific claim as to Coinbase’s Wallet product was rejected, although on different grounds.