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Cryptoassets from a consumer protection perspective
Produced in partnership with Puesan Lam of DLA Piper and Tony Katz of DLA Piper
Practice notesCryptoassets from a consumer protection perspective
Produced in partnership with Puesan Lam of DLA Piper and Tony Katz of DLA Piper
Practice notesWhat are cryptoassets?
One of the hurdles in relation to understanding non-traditional currencies and assets lies in the inconsistent Use of language. Regulators and tax authorities, as well as commentators, refer variously to digital currencies, virtual currencies, cryptocurrencies, cryptoassets and crypto tokens, and it is not always clear whether they are using the terms interchangeably or with the specific meaning of each in mind. For more information about how these terms are defined, see Practice Note: Web 3.0, digital assets and cryptoassets—essentials.
In this Practice Note, the term ‘cryptoasset’ is used as a generic term for cryptocurrencies, virtual currencies, virtual assets or digital tokens. This Practice Note provides an overview of the key risks for Consumers from cryptoassets, the current protections available and potential improvements that can be made to the regulatory regime.
Risks to the consumer posed by cryptoassets
Lack of regulatory protections
A number of consumer protection issues arise from the use of cryptoassets. As the European Banking Authority (EBA) has warned, consumers who have bought
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