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If you intend to start crypto activities in the EU, UK, or USA, it should be borne in mind that cases of manipulation and fraudulent schemes using crypto assets have become more frequent these days. This article provides a brief overview of the UK crypto-asset dispute resolution options that business people may face in other jurisdictions, too.

Earlier this year, the Financial Conduct Authority introduced new regulatory mechanisms to prevent financial crime. The updated regulation of financial activities in the UK allowed for more detailed monitoring of how companies working with cryptocurrencies conduct their business. The regulator has identified the risks associated with crypto assets, highlighting, in particular, fraud in this area.

Crypto-asset manipulation

With the rapid expansion of cryptocurrency markets in the past few years, the number of fraudulent activities involving this asset class has also skyrocketed.

The most common cryptocurrency scams include:

  1. ICO fraud;
  2. Fraud with exchanges and exchanges;
  3. PONZI schemes;
  4. Manipulations with cryptocurrency wallets;
  5. Phishing;
  6. “Counterfeit cryptocurrencies”;
  7. Frauds with imitation of real famous personalities or official project accounts.

As a result of this situation, there is an increasing need to resolve disputes related to cryptoasset fraud. For example, in the course of a recent dispute resolution in the UK, the complainant was the victim of a phishing attack, when his email was hacked and an investment of over 100 bitcoins was redirected to scammers.

When considering the case, the court proceeds from the assumption that bitcoin can be legal property and accept injunctions and orders to preserve assets.

If you have a need to resolve a dispute over cryptocurrencies in Britain or other jurisdictions, you should pay attention to the following constraints:

  1. Identifying bitcoin holders can be problematic. Applications will be made to the High Court for clarification on this matter;
  2. Crypto assets are difficult to trace;
  3. Legal arguments regarding the regulation of cryptocurrencies in the UK. Crucially, when applying to the High Court, to establish that the grounds are applied in accordance with the Rules of Civil Procedure and Practice Guideline 6B.

It is important to understand that with the right strategy, the above obstacles can be overcome. IQ Decision UK specialists are ready to advise you on the resolution of litigation over crypto assets in Britain and the EU and provide the necessary accompanying services at all stages. To sign up for personal consulting, fill out the quick contact form, which is presented below.