Usman Sheikh and Michael Garellek join Baker McKenzie in Toronto

Usman Sheikh and Michael Garellek join Baker McKenzie in Toronto

They were previously serving at Gowling WLG

Baker McKenzie has announced hiring blockchain and fintech lawyers Usman Sheikh and Michael Garellek as partners in Toronto, Canada.

While Sheikh is the chair of the blockchain and fintech practice, Garellek will head the firm's financial services regulatory practice.

Sheikh remarked, "Whether you call it the crypto winter, or the crypto spring cleaning, I think that things may get worse before they get better." He said the space was headed towards restructurings, bankruptcies, litigation, and regulatory investigations.

"We will be expecting to see, in the next year or two, a significant uptick in the number of enforcement investigations in areas that we have not seen as extensive a number of investigations or enforcement to date. And that may be in the area of NFTs, decentralized finance protocols, and others," he added.

Garellek expected to see greater scrutiny from regulators on applications of registration, and more time taken in reviewing those applications. He stated, "Our role is to educate our clients on what the expectations are for greater scrutiny, for a little longer time in handling those applications by regulators.

Both maintained that the crypto and blockchain space was here to stay.

Garellek added, "It is not a doom and gloom situation. This is what we see in innovation. Often, whether talking about the internet, blockchain, or other innovative areas, these are going to be terrific learning experiences for the industry to help the area grow and mature. It would achieve better compliance and help participants and firms develop processes and controls to comply with regulatory requirements."

With Baker McKenzie having 74 offices in 45 countries, Sheikh and Garellek felt the global platform was attractive and fitted well with the needs of their clients.

Sheikh expressed, "Gone are the days of the files that were confined to one country's borders. A global practice like mine really requires a truly global firm. The clients that we deal with are on the cutting edge of innovation. This means we need to discuss trends and developments and collaborate closely with colleagues in other leading jurisdictions around the world. The firm is very interested in leading innovation, not following. That resonates strongly with my practice."

With expertise in emerging technologies, Sheikh has advised on token sales and cryptocurrency exchanges and briefed several prime minister's offices on the blockchain. His clients include large banks, stock exchanges, Ethereum co-founders, 12 of the world's largest cryptocurrencies, decentralized finance protocols, and metaverse projects. Active in fintech and blockchain thought leadership, he speaks around the world on the critical role of lawyers in helping regulators and government bodies understand and regulate the area.

On the other hand, Garellek advises banks, securities dealers, regulated financial institutions, fintech companies, crypto-trading platforms, and others on regulatory and compliance. He also assists with transactions, covering various deal types.

The duo has a background working for regulators. While Sheikh was an enforcement counsel at the Ontario Securities Commission, Garellek was a securities examiner at the Autorité Des Marchés Financiers.