Introduction
Digital Assets and Cryptocurrency
Blockchain technology is transformative and has been a major engine of recent innovation and disruption in financial services and other sectors. Lawyers in our Digital Assets and Cryptocurrency practice have a long track record in advising clients from the advent of this technology on the complex legal and regulatory challenges posed by developing blockchain services and applications.
Our approach to digital and crypto assets stems from a deep understanding of the underlying technology. We combine this technical knowledge with our knowledge and experience of financial markets and regulation – across securities, payment, AML, custodian and trust regulation. We closely monitor the fast pace of change and evolution of regulation, and advise clients on licensing and compliance requirements. This applies both in respect of market entry and expansion of business for incumbents.
We have a particular focus on project teams in DeFi, GameFi and RWA tokenisation. We advise on the structure of their arrangements, the application of securities and AML laws, DAO governance, risk management, and contractual arrangements, whether for SAFTs, token sales or ongoing development.
Our practice is interdisciplinary. Lawyers in our fraud, asset recovery and dispute resolution team have significant experience in a broad range of investor, commercial and shareholder disputes, court and arbitration proceedings, and regulatory investigations involving digital and cryptoassets. We have the experience to provide rapid response services in fraud scenarios, and to lead cryptoasset tracing exercises. We have excellent connections with technical experts and offshore and international lawyers specialised in blockchain and cryptocurrency matters.
We are ideally positioned to provide comprehensive advice and explore legal solutions according to the often unique needs of clients.
Key Contacts
Services
We advise on:
- Regulation, compliance and licensing requirements, including securities, payment, stablecoin and anti-money laundering regulations
- Tokenisation of real-world assets, and other token offerings
- Stablecoin and digital payment projects and offerings
- Funding arrangements for projects and platforms
- Business model and project governance analysis
- OTC cryptocurrency transactions
- Platform terms and conditions
- Collaboration and other commercial arrangements
- Crypto asset tracing and recovery
- Restructuring and insolvency of crypto and digital asset businesses
- Intellectual property and data privacy considerations
Experience
- Advised a variety of virtual asset trading platform operators and other digital asset service providers and project teams on the application of Hong Kong securities, payment, stablecoin, anti-money laundering and consumer protection regulation to offering and provision of services to Hong Kong users.
- Advised on the structuring of a variety of tokenisation projects involving real world assets.
- Advised a cryptocurrency payment business on its online conditions of service in respect of real-time sale and purchase of cryptocurrency.
- Advised a number of blockchain based businesses on the application of securities and payment regulation in respect of intended token sales or listing of tokens on exchanges.
- Advised on remedial actions for a defi project in the context of its operations in Hong Kong, including guidance on anti-money laundering regulation and securities enforcement risk.
- Advised a leading open NFT metaverse platform on its US$92,847,573 Series A and B financing rounds.
- Advised on a US$30 million Series B equity investment, and its related US$100 million future business collaboration to incubate and accelerate emerging Web3 businesses.
- Advised a consumer lending business on its proposed operation of an NFT minting platform and NFT offering to the Hong Kong public.
- Advised a Web3 gaming business on the application of securities regulation to in-game assets featured in a mobile game under development.
- Assisted a cryptocurrency company in structuring additional funding required for a capital call.
- Advised on fund formation and tokenisation of fund interests in a commodity fund.