HELPING APTO PAYMENTS LAUNCH THE UK’S FIRST CRYPTOCURRENCY DEBIT CARD

Working in conjunction with Coinbase – one of the world’s leading cryptocurrency exchanges – this was Apto’s first venture into the UK market, where it would be  providing the proprietary technology behind the card payment programme. Being a first-of-its-kind product, the launch of the Coinbase debit card was designed as a cutting-edge payment solution - giving Apto and Coinbase significant visibility among consumers and businesses.

The success of this launch would have a significant impact on the payment card market, and put Apto in an advantageous position for future fintech ventures in the UK. However, being a totally new product, this was complex territory for both Apto and Coinbase. In addition, a third party was brought in to facilitate the issue of cards, adding a further level of complexity.

In 2018, Stan Koppel, Regulatory of counsel in BCLP's San Francisco office, introduced Meg Nakamura, Co-Founder and CEO of Apto, to Marcus Pearl and Louis Wihl in BCLP's London fintech team. With extensive fintech experience, the team were well-positioned to act for Apto in connection with the launch of the UK's first-ever cryptocurrency debit card.

Given the uncertainty surrounding the regulation of virtual currency, careful consideration was needed with respect to potential regulatory requirements, such as that of payment services and electronic money. The team carried out a comprehensive analysis to ensure a clear understanding of the client's regulatory position.

A detailed knowledge of the products' structure including the operational processes was also necessary; negotiations involved operational, commercial, compliance and legal teams from each party – many of them in the US. Close collaboration, absolute transparency and clarity of communications were crucial throughout.

Collaboration across legal disciplines was also critical on such a complex, fast moving project. BCLP's London Data Protection team provided the necessary analysis of the data flows to make sure that the client was in a strong position in terms of its legal obligations and contractual commitments.

BCLP created bespoke agreements which enabled the launch of the cryptocurrency debit card and will support Apto’s ability to continue to innovate and provide new payment card solutions across the global market.

Louis Wihl, BCLP Senior Associate, explains: "We were fortunate enough to act for Apto on this incredible opportunity because we have extensive payment sector knowledge and we were able to deliver because of our joined up approach and by building a close working relationship with Apto. "