Crypto. Cryptoassets are in the spotlight for many reasons. The use of cryptocurrencies as an alternative to fiat currencies is being explored and tested further by global events. Their correlation with traditional stores of value is being tested in volatile markets. Their status as both a potential means of avoiding sanctions and as a possible means of funding charitable and humanitarian causes is being demonstrated and discussed.
Innovation. Cryptoassets and blockchain remain sources of deep and rapid innovation in financial markets. They are proving to be both investable and adoptable in financial markets.
Information or misinformation? Alongside all that, the crypto market can be a source of information, misinformation and unsound assumptions. But good sources of information do exist, and the transparency of databases means that in fact it is easier to test hypotheses and investigate transactions with access to the right tools.
Different projects. It is important to remember that not all crypto projects are the same (or even similar). Projects can gain or lose value in the markets very quickly, but many have fundamentals that retain value because of a combination of technical innovation, teams, brand, developed software, value in the native token or in investments made using proceeds of token issuances, access to investors, community engagement, and many other reasons.
New tools and softwares exist – and are ever evolving. These give us the ability to track and trace cryptoassets to be sure to avoid sending or receiving cryptoassets from undesired locations or sources. This makes it more possible than ever before to comply with AML requirements as well as any sanctions that may be in place.
CMS. At CMS, we have a large and dedicated team experienced in all areas of crypto transactions. The combination of our market leading crypto team and our outstanding restructuring and insolvency team makes us uniquely placed to advise you on transactions in this space.
