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.
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The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.