In our 2024 FinTech Outlook, our lawyers from across Europe, the Middle East, Asia and the US share their insights on what to expect across the regulatory landscape in relation to FinTech and cryptoassets in 2024.… Continue Reading
On 25 January 2024, the Bank of England (BoE) and HM Treasury (HMT) published their response to the consultation on a ‘digital pound’, which was launched in February 2023 and received over 50,000 responses. In the response they confirmed that no final decision has been made to pursue a digital pound, also known as a … Continue Reading
In late 2023, HM Treasury set out its final proposals for the UK’s future financial services regulatory regime for cryptoassets, confirming its intention to bring a number of crypto activities into the regulatory perimeter for the first time. A week after HM Treasury’s final proposals were published, the FCA and the Bank of England both … Continue Reading
On 18 December 2023, the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 (SI 2023/1398) were published, along with an explanatory memorandum. The Regulations create the first financial market infrastructure (FMI) sandbox, the Digital Securities Sandbox (DSS), which is intended to allow firms and the regulators to test the use of new … Continue Reading
On 14 December 2023, the Basel Committee on Banking Supervision (Basel Committee) issued a consultative document setting out proposed amendments to its standard on banks’ exposures to cryptoassets. In December 2022, the Basel Committee published its standard on the prudential treatment of banks’ exposures to cryptoassets. The standard is set out in a new chapter … Continue Reading
On 7 December 2023, the European Banking Authority (EBA) issued a consultation paper containing draft regulatory technical standards in accordance with Article 32(5) of the Markets in Crypto-Assets Regulation (MiCAR) which mandates the Authority to specify the requirements for the conflicts of interest policies and procedures for issuers of asset-referenced tokens (ARTs) as well as … Continue Reading
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
On 27 November 2023, the European Banking Authority (EBA) published a final report containing updated guidelines on risk-based supervision. The guidelines have been amended so that they extend to anti-money laundering and countering the financing of terrorism (AML/CFT) supervisors of crypto-asset service providers (CASPs) as defined in the Regulation on markets in crypto-assets (MiCA). Article … Continue Reading
On 24 November 2023, the European Banking Authority (EBA) issued a public consultation on new guidelines on preventing the abuse of funds and certain crypto-asset transfers for money laundering and terrorist financing purposes. Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets recasts Regulation (EU) 2015/847 and extends its scope to the … Continue Reading
On 22 November 2023, HM Treasury (HMT) published its response to the July 2023 consultation on the Digital Securities Sandbox (DSS). The response sets out the Government’s final approach to implementing the DSS, which will facilitate the use of digital assets in financial markets. The DSS will be the first Financial Market Infrastructure (FMI) Sandbox … Continue Reading
On 16 November 2023, the European Securities and Markets Authority (ESMA) published a speech by its chair, Verena Ross, entitled Innovation with protection: the next steps on the MiCA journey. In the speech Verena Ross covers some of the key features of ESMA’s October consultation paper on the second package of level 2 measures for … Continue Reading
On 14 November 2023, the European Central Bank published a speech by Andrea Enria (Chair of ECB Supervisory Board) entitled ‘Regulating crypto finance: taking stock and looking ahead’. In his speech Mr Enria: Among other things Mr Enria notes that as things currently stand, the ECB considers it very difficult to include in the scope … Continue Reading
On 8 November 2023, the European Banking Authority (EBA) published three consultations on draft regulatory technical standards (RTS) to specify the liquidity requirements of the reserve of assets, the highly liquid financial instruments in the reserve of assets and the minimum content of the liquidity management policy and procedures of relevant issuers of tokens. The … Continue Reading
On 8 November 2023, the European Banking Authority (EBA) published two consultation papers on draft regulatory technical standards (RTS) on own funds requirements and stress testing issuers under Article 45(7)(c) of the Markets in Crypto-assets Regulation (MiCA). The draft RTS on the adjustment of own funds requirements and design of stress testing programmes for issuers … Continue Reading
On 8 November 2023, the European Banking Authority (EBA) published a consultation paper on draft regulatory technical standards (RTS) specifying the methodology to be applied by issuers of asset-referenced tokens (ARTs) and of e-money tokens (EMTs) denominated in a non-EU currency for reporting transactions associated to uses of these tokens ‘as a means of exchange’. … Continue Reading
On 8 November 2023, the European Banking Authority (EBA) published a consultation paper on draft regulatory technical standards (RTS) on supervisory colleges under Article 119(8) of the Markets in Crypto-assets Regulation (MiCA). The proposals set out in the draft RTS specify: (i) the criteria to be used for determining “the most relevant” custodians of the … Continue Reading
On 8 November 2023, the European Banking Authority (EBA) published a consultation paper on draft guidelines on recovery plans under Articles 46 and 55 of the Markets in Crypto-assets Regulation (MiCA). Through recovery planning, issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs) should prepare in advance to face adverse scenarios that may impact their … Continue Reading
On 30 October 2023, HM Treasury (HMT) published its final proposals for the future financial services regulatory regime for cryptoassets in the UK, comprising two responses to consultations and a policy paper. In this latest Regulation Tomorrow Plus podcast (recorded on 2 November), Jonathan Herbst, Hannah Meakin and Anita Edwards discuss HMT’s proposals and the … Continue Reading
On 6 November 2023, the Financial Conduct Authority (FCA) and Bank of England (BoE) published discussion papers on their proposed approach to regulating stablecoins, and the Prudential Regulation Authority (PRA) published a Dear CEO letter on innovative uses of deposits, e-money and stablecoins. The FCA, BoE and PRA also published a joint “roadmap paper” aimed … Continue Reading
On 2 November 2023, the FCA published Finalised Guidance FG23/3: Finalised non-handbook guidance on cryptoasset financial promotions (FG23/3). FG23/3 provides information on and sets out the FCA’s expectations of the communication and approval of financial promotions for qualifying cryptoassets. The FCA published its final rules (PS23/6) for cryptoasset financial promotions on 8 June 2023, after … Continue Reading
On 30 October 2023, HM Treasury (HMT) published its final proposals for the future financial services regulatory regime for cryptoassets in the UK. These proposals are set out in HMT’s response to its February 2023 consultation and call for evidence (CfE) on the topic, its response to the May 2022 consultation on managing the failure … Continue Reading
On 27 October 2023, the FCA published a new webpage: Crypto asset registration – information for applicants. The webpage provides information on typical questions firms may have with regards to getting their registration ready, associated individuals and what happens after they have submitted their application.… Continue Reading
On 25 October 2023, the FCA published a warning regarding common issues with crypto marketing, after a new regime came into effect which brought such promotions under its remit. Since 8 October 2023, when the FCA began supervising firms against the new regime, it has identified 3 common issues with crypto asset financial promotions including: … Continue Reading
On 20 October 2023, the European Banking Authority (EBA) published for consultation two draft regulatory technical standards (RTS) that it is mandated to develop under the Regulation on markets in crypto-assets (MiCA): Draft RTS the minimum content of the governance arrangements on the remuneration policy By way of background, MiCA requires issuers of significant ARTs … Continue Reading