September was an exciting month in the digital asset space with developments in both Parliament and the Courts. Both venues have made strides to establish digital assets as property in England and Wales. With these developments come a raft of property rights for the owners of such assets, such as the benefit of various consumer protection measures and availability of certain legal mechanisms, such as tracing, injunctive relief and enforcement.
Continue reading “Watch this (Digital) Space: The Property (Digital Assets etc) Bill and D’Aloia v Persons Unknown”UK Government Consultation on the Promotion of Cryptoassets
By Sam Pearse
30.08.2020
The UK Government has launched a Consultation regarding cryptoassets, focussing on whether unregulated cryptoassets should fall within the financial promotions regime, thereby affording protection for consumers. There is no immediate impact on cryptoasset businesses, but the regulatory landscape is changing.
Background
The UK Financial Services and Markets Act 2000 sets out restrictions on the communication of invitations or inducements to engage in investment activity, such as investing in securities. In brief terms, only those persons who are authorised by the Financial Conduct Authority (FCA) may make such communications, or persons who are making a communication which as been authorised by an authorised person. Incidentally, the ‘approved communications’ exemption is also being reviewed by HM Treasury and our article about that can be found here.
At its core, the restriction on financial promotion is intended to protect consumers from being mis sold products, whether by virtue of being provided with insufficient information or by fraudulent activity or investing in immature or inadequate market infrastructures. Continue reading “UK Government Consultation on the Promotion of Cryptoassets”