Cryptoassets from a consumer protection perspective

Produced in partnership with Puesan Lam of DLA Piper and Tony Katz of DLA Piper
Practice notes

Cryptoassets from a consumer protection perspective

Produced in partnership with Puesan Lam of DLA Piper and Tony Katz of DLA Piper

Practice notes
imgtext

What 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

Puesan Lam
Puesan Lam

Solicitor, DLA Piper


Puesan advises clients on a wide range of regulatory and compliance matters, including: authorisation and perimeter issues; prudential and conduct of business requirements, regulatory filings, regulatory investigations, insider dealing and market manipulation issues and EU regulatory matters, such as MiFID II, EMIR, AIFMD and PSD.

Her experience includes

-Advising on regulatory issues arising from cross-border corporate transactions -Advising a high-frequency prop trader on the revised scope of MiFID and implications for the its business -Advising former OFT licensed firms on the new FCA consumer credit regime -Advising an outsourced business provider in relation to its provision of outsourcing services to UK retail banks -Advising asset managers on compliance issues, including outsourcing, conflicts of interest and remuneration matters -Advising non-EU entities on their obligations under EMIR -Advising non-EU asset managers on marketing issues and remuneration disclosures under AIFMD.

Lexis PSL Financial Services

About Lexis PSL

Tony Katz
Tony Katz

Tony Katz is Head of Financial Services and Investigations at DLA Piper and he focuses on regulatory work (both advisory and contentious) for financial institutions and global investigations. He advises leading financial institutions, banks, funds, brokers, trading firms, payment services and other financial services firms on a range of advisory and contentious issues. Tony has deep experience in contentious matters, including regulatory and exchange investigations in the UK, EU, the US and Asia. He also has extensive experience in conducting cross-border internal investigations and advises specifically on the UK Bribery Act including advising on Section 7, Adequate procedures' defence and drafting adequate procedures for clients. Prior to joining DLA Piper in 2014, Tony was partner at Orrick, Herrington and Sutcliffe; in the Financial Institution Regulatory practice, and a member of the European Litigation Group. He was also Group Head of Compliance at the Liquid Capital Group, the global options market making firm. He began his legal career in South Africa at Edward Nathan Sonnenbergs and then practiced in London with Slaughter and May for six years. He served for four years at the Financial Services Authority, the regulator of the financial services industry in the United Kingdom, as a Manager in the Retail Policy and Conduct Risk Division.

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Key definition:
Asset definition
What does Asset mean?

(1) Any item of value; (2) The holdings of a fund, which may include stocks, shares, fixed-interest securities or cash; (3) The main types of investment available: bonds, equities, real estate, commodities etc.

Popular documents