Apr 2024

Foreword: Cryptoassets Law Over Borders Comparative Guide

There is no clear winning jurisdiction for the title of “Global Crypto Hub” yet. Depending on need, there are a few specialist legal and compliance hubs for crypto projects. The specific legal frameworks for cryptoassets have been rapidly emerging over recent years. We are seeing new legislation being built upon the familiar foundational principles in law. As an example, the legislator has been expanding the existing capital markets framework to capture crypto in its relevant aspects (e.g. the financial promotions regime). Meanwhile, the regulator has also been relying on the traditional frameworks in securities laws while taking a view on cryptoassets (e.g. the investment contract concept).

In terms of current crypto-friendliness, the global view is that the United States has increasingly been shown to be unaccommodating towards cryptoassets, while the EU has been advancing with a variety of legislation (the MiCAR as an example). The United Kingdom is taking time to observe the market (albeit the English courts are proving agile to respond to business need in this space), whereas the British Overseas Territories like the Cayman Islands, the British Virgin Islands and Gibraltar have, for several years, proven to be helpful in facilitating various crypto projects. In more recent times we have seen the United Arab Emirates coming up with enhanced frameworks in Dubai and Abu Dhabi.

Being a lawyer in the emerging crypto space is both challenging and rewarding at the same time. New legal frameworks specific to cryptoassets follow technological innovation across a variety of sectors. Lawyers are instrumental in navigating the ever-expanding crypto legal space, as well as drafting new legislation. Crypto-specific legislation and case law brings along more trust in these new technologies and products, and is an important step on the road to maturity. After all, who will invest substantially if they don’t have recourse to law?

Blockchain technology as a ledger that is connected to tokens has many use cases, capturing various sectors horizontally. We are already seeing this technology being used in traditional asset classes, and also in an entirely new context, thereby bringing about new asset classes and other interesting products.

This Law Over Borders Comparative Guide to Cryptoassets provides a useful overview of the current state of legislation and case law applicable to cryptoassets across relevant jurisdictions. I hope you find it beneficial in getting up to speed with the latest developments and finding answers to any specific questions you may have.

I look into the future with anticipation and curiosity.