On 28 November 2023, the Financial Stability Board (FSB) published a report on the financial stability implications of multifunction crypto-asset intermediaries (MCIs). The report defines MCIs as individual firms, or groups of affiliated firms, that combine a broad range of crypto-asset services, products and functions typically centred around the operation of a trading platform. The … Continue Reading
Key takeaways from Hong Kong Fintech Week Hong Kong Fintech Week 2023 saw several new policy and regulatory announcements by the Financial Services and the Treasury Bureau (the FSTB), the Securities and Futures Commission (the SFC) and the Hong Kong Monetary Authority (the HKMA). The key developments are summarised below: SFC guidance on engaging in … Continue Reading
Background On 20 October 2023, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) issued an updated joint circular on intermediaries’ virtual asset-related activities (Joint Circular) with appendices. This Joint Circular supersedes the previous joint circular of 28 January 2022. When the SFC formulated its regulatory approach to virtual assets (VAs) … Continue Reading
On 17 October 2023, the Basel Committee on Banking Supervision (Basel Committee) published a consultation document on the disclosure of crypto-asset exposures. The consultation document follows the Basel Committee’s paper on the prudential treatment of cryptoasset exposures which was published in December 2022 and set out the prudential requirements for banks’ exposures to cryptoassets. In … Continue Reading
On 7 September 2023, the Financial Stability Board (FSB) and the International Monetary Fund (IMF) published a joint synthesis paper on policies for crypto-assets. The report synthesises the IMF’s and FSB’s policy recommendations and standards. The report illustrates macroeconomic and financial stability implications of crypto-asset activities, how they may interact, and how the IMF and … Continue Reading
The Singapore Courts have issued yet another landmark decision on the nature of crypto assets. In ByBit Fintech Ltd v Ho Kai Xin and others [2023] SGHC 199, the High Court was presented with the issue of whether crypto assets are property capable of being held on trust, and if so, what type of property … Continue Reading
On 17 July 2023, the Financial Stability Board (FSB) announced that it has finalised the global regulatory framework for crypto-asset activities by publishing two distinct sets of recommendations. Both sets of recommendations are addressed to financial regulatory, supervisory and oversight authorities. The recommendations are: The revised recommendations are:… Continue Reading
On 11 July 2023, the Bank for International Settlements (BIS) published a report on the crypto ecosystem: key elements and risks. The report reviews the key elements of the crypto ecosystem and assesses its structural flaws. It also discusses the risks that it poses and the options for addressing them. It also identifies data gaps … Continue Reading
On Thursday 13 July 2023, we will be hosting a webinar focused on the European regulatory regime for crypto-assets, with perspectives from the UK, France, Belgium and the Netherlands. In this webinar, our European crypto regulation team will discuss: We will close the webinar with a short Q&A so please do come with your questions. … Continue Reading
On 23 May 2023, the Securities and Futures Commission (the SFC) published its much anticipated consultation conclusions (the Consultation Conclusions) on the proposed regulatory requirements for virtual asset (VA) trading platform operators (Platform Operators). The new licensing regime for Platform Operators under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) will come into effect on … Continue Reading
On 23 May 2023, the International Organization of Securities Commissions (IOSCO) published a consultation report containing 18 proposed recommendations intended to help IOSCO members apply IOSCO’s Objectives and Principles for Securities Regulation and relevant supporting IOSCO standards, recommendations and good practices to crypto-asset activities within their jurisdictions. The proposed recommendations cover six key areas: The … Continue Reading
Introduction In a landmark decision on the legal status of digital assets in Hong Kong handed down on 31 March 2023, the Court of First Instance, in Re Gatecoin Limited[1], has ruled that cryptocurrencies satisfy the definition of “property” under Hong Kong law and are capable of being held on trust. The case arose in connection … Continue Reading
