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There is growing certainty about how to perfect a security interest in cryptocurrency, but the roadmap to implement the preferred method of perfection, by “control,” remains extremely complex because of difficulties in determining applicable law. Lenders should consult counsel if they seriously consider cryptocurrency as collateral.

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As the cryptocurrency market continues to develop and expand, it’s important you work with attorneys who are prepared to advise clients on structuring their investments on the front end and protecting their interests should a dispute arise.

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