Cryptoassets

As cryptoassets have increasingly moved from unregulated to regulated, those seeking to facilitate their place in the market have had to navigate regulatory uncertainty.

Many are aligning with existing state demands and preparing for the sweeping change that always seems imminent yet never immediate. Success that isn’t undermined by excessive regulatory risk requires an eye for detail and, at times, the patience of a saint.

Regulatory challenges of crypto trading

Our regulatory cryptoassets offering is built on our experience of working with crypto since the early days of its foray into the capital markets. Across key jurisdictions in the US, Asia, and Europe, we’ve helped firms apply rules written for the ‘traditional’ market to crypto, and we continue to adjust our offering as more tailored rules emerge.

Under the current regimes, our Capital Markets team advises on matters within the following jurisdictions:

United Kingdom: Alignment with the Money Laundering Regulations, financial promotion rules, and the travel rule.

European Union: Compliance with the Markets in Crypto-Assets (MiCA) regulations, helping those engaged in the issuing, the offering to the public, and the provision of services in relation to crypto-assets.

United States: Compliance for crypto exchanges with FinCEN rules for Money Service Businesses.

Hong Kong: Support to trading platforms, fund managers, intermediaries and distributors engaging in virtual asset services.

Singapore: Alignment with the Payment Services Act (PS Act), which regulates cryptocurrencies (DPTs), covering activities including buying and selling, and custody services.

With each of the above regimes, our team will run your licence and / or registration application as well as drive your day-to-day compliance with the core tenets if required.

Staying ahead of the curve

We’ll advise on the future state, helping you to transition as the regulation changes.

United Kingdom

The UK is moving towards a more onerous regime (FCA Crypto Roadmap) in which existing regulations will be more fully adapted to the crypto phenomenon. This will lead to a greater quantity of regulation, with which many crypto firms will need to comply.

United States

Congress is considering bills related to cryptos and stablecoin, the passage into law of which would increase the regulation in the industry.

Hong Kong

The SFC has set out 12 new initiatives for cryptoassets (SFC’s regulatory roadmap), the introduction of which we’re currently following.

Singapore

A new regulatory framework for Digital Token Service Providers (DTSPs) has been proposed (Consultation P010-2024). This specifically relates to firms in Singapore providing crypto services outside of Singapore.