Cryptocurrency Compliance for Asset Managers

Since the launch of bitcoin in 2009, cryptocurrencies and the encrypted, decentralized blockchain protocol that underpins them have grown from abstract theories to a transformational force that is disrupting the way many industries will operate for decades to come. Decentralized ledger technology and smart contracts will ultimately disrupt and reshape a long list of industries, including financial services, intellectual property, logistics and supply chain, the internet of things (IoT), energy, health care, insurance and the sharing economy.

In this session, Dechert financial services partner Timothy Spangler, along with esteemed faculty members, discussed the increasing use of cryptocurrencies and other digital assets and the complex legal issues relating that arise in relation to regulatory compliance (including valuation, custody and reporting), corporate and securities law (including initial coin offerings), fund formation, derivatives, mergers and acquisitions, venture capital, taxation, and litigation and regulatory enforcement.

The landscape for financial products and services integrating blockchain technology is evolving rapidly. Whether launching funds to invest directly or indirectly in digital assets or creating new coins or tokens in connection with the launch of new distributive networks, firms operating in this area have many legal and regulatory concerns that must be addressed. This session provided a roadmap to identify and track the key issues that arise for these financial services firm.