Stablecoins, whose value is pegged to fiat currency, gold or other assets ostensibly to avoid the
fluctuations typical of cryptocurrencies, have become increasingly popular. However, the crypto
industry (including stablecoins such as TerraUSD and LUNA) has been experiencing prolonged
distress, prompting regulatory concerns and an increased focus on consumer protection in this
context.

In a new article, which was first published by LexisPSL on 17 January 2023, we look at the implications of the recent Upper Tribunal judgment in the case of Moneybrain Ltd v The Financial Conduct Authority. The judgment is relevant to cryptoasset businesses, particularly those dealing with tokens that have some (theoretical or practical) correlation to other assets, and the promotional material in respect of these tokens. The exact nature of the cryptoasset, and any link (or lack thereof) that it has to separate assets, must be clearly explained to the consumer in any marketing material such as wording on its websites, project memorandums, videos etc, and the explanation should be readily accessible.

To read the article, click here.

 

 

Karen Anderson
Karen Anderson
Partner
+44 20 7466 2404
Marina Reason
Marina Reason
Partner
+44 20 7466 2288
Charlie Morgan
Charlie Morgan
Senior Associate
+44 20 7466 2733
Vrinda Vinayak
Vrinda Vinayak
Associate
+4420 7466 2054