Cryptoassets and NFT Regulation

As the world of crypto becomes more mainstream, we have gathered a team of specialist business crime lawyers to advise on all regulatory compliance, and draft unique policies relating to cryptoassets, including non-fungible tokens (NFTs).

Given our expert knowledge and experience, we regularly advise clients in relation to matters which also touch on the regulation of cryptoassets and the underlying blockchain technology.

We see the relevant legal aspects of the complex world of blockchain, cryptoassets and NFTs broadly falling under three areas: regulation, litigation, and tax. Our team of experts advise in relation to all three areas and, if necessary, work together where these areas may overlap.

We fully understand that the global nature of cryptoasset transactions requires an in-depth knowledge of the differing regulations across multiple jurisdictions, in order to predict where issues may arise and advise accordingly. Our team have the skills and experience to do so.

Whether a client needs regulatory advice, asset-tracing expertise, or a confident litigator, we regularly pull our resources together to provide our clients with the best-tailored service to suit their bespoke needs.

Finally, we are at the forefront of providing tax advice in this complex area and have assisted many clients with taxation issues.

Cryptoasset and NFT Regulation, Litigation and Tax

As governments, regulatory bodies and enforcement agencies around the world grapple with trying to play catch-up to the world of blockchain and crypto, we are witnessing an evolving platform of regulation.

With an increasing number of individuals and corporate investors looking at cryptoassets and NFTs as a potential method of conducting business, there is a growing need for a firm practical understanding of the evolving nature of the underlying regulations, which are starting to be applied to the various participants in crypto transactions.

These changes are happening at both the domestic and international levels, with organisations such as the Financial Action Task Force providing recommendations that can be implemented on a much larger scale.

We understand the pressing need for a fluid and dynamic knowledge of the growing markets themselves, and are proud of our deep understanding of the regulatory landscape. To help our clients and the wider community, we have published an up-to-date series of blogs that chart the fast-moving changes as and when they occur.

We are also in a position to provide bespoke AML regulatory advice, underpinned by our experience and specialist knowledge, to ensure compliance with all relevant regulations, assist with drafting of associated policies and procedures, and ensure that proper systems are put in place.

Blockchain and Cryptoasset Litigation

As with any financial system, blockchain and the online world of crypto is subject to criminal activity.

We advise clients who have had the misfortune of falling victims to fraudulent schemes, resulting in loss of cryptoassets either through ransomware demands, or other wrongdoing.

In these circumstances, we provide advice on tracing property, wherever in the world it may be held, and have the power to bring the full force of civil recovery tools to ensure its recovery. In this regard, our business crime team works closely with our civil litigation colleagues to provide a fully comprehensive service to maximise the chances of a successful outcome. Our stellar reputation means that we can also engage and work with specialist external tracing agencies, where required.

Blockchain and Cryptoasset Taxation

Finally, we provide advice in relation to the taxation of cryptoassets and associated HMRC guidance. Gherson Solicitors LLP has assumed a leading role in discussions surrounding this area; and last year we submitted a Freedom of Information request to HMRC with regard to its international and domestic data gathering.

Although cryptoassets are taxed in a very similar way as other investments, there are certain key aspects to be aware of. Indeed, HMRC has produced specific guidance in this regard, and we are well-positioned to assist our clients with the necessary steps. Additionally, our specialist tax team offers advice on any particular jurisdictional aspects that have to be taken into consideration.

Recent cases

  • Provided advice and assistance to numerous companies and individuals in connection to establishing whether their company activities and/or cryptoasset transactions crossed into the regulatory sphere, and identified the necessary authorisation and/or licensing, if required;
  • Advised regarding anti-money laundering compliance procedures, including in relation to cryptoassets and NFTs;
  • Advised in relation to litigation in a multi-jurisdictional cryptocurrency-related dispute;
  • The team assisted MusicArt (the only planet-friendly NFT marketplace) in complying with relevant anti-money laundering (AML) law and regulations.
  • Gherson advises Non-Fungible Token marketplace company MusicArt