On 17 August 2023, the FCA published on its website a statement setting out its expectations for UK cryptoasset businesses complying with the Travel Rule. From 1 September 2023, cryptoasset businesses in the UK will be required to collect, verify and share information about cryptoasset transfers, known as the ‘Travel Rule’. The statement provides that … Continue Reading
Our global financial services team has launched a new platform, CryptoNavigator, which provides a mixture of plug-and-play products and tailored advisory services to help firms navigate ever expanding regulatory requirements across the cryptoassets landscape. These include products and services to provide support with financial promotions and authorisations, as well as a global legal and regulatory … Continue Reading
On 20 July 2023, the House of Commons’ Treasury Committee published the government’s response to its report on Regulating Crypto. In the report, which was published in May 2023, the cross-party Committee of MPs called for consumer trading in unbacked crypto to be regulated as gambling. The Committee had outlined concerns that the government’s proposals … Continue Reading
On 12 July 2023, the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) published for public consultation various draft technical standards that they are mandated to develop under Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA). Whilst the draft rules published by ESMA focus on the relevant requirements for crypto-asset service … 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 4 July 2023, the FCA published a letter addressed to cryptoasset firms, warning them that they must get ready for the financial promotions regime by 8 October 2023. The letter explains that the UK Government has now legislated to bring qualifying cryptoassets within scope of the financial promotions regime and reminds firms that once … Continue Reading
On 9 June 2023, both Regulation 2023/114 on markets in cryptoassets (MiCA) and Regulation 2023/1113 on information accompanying transfers of funds and certain cryptoassets (recast revised WTR) were published in the Official Journal of the EU (OJ). The recast revised WTR enters into force 20 days after its publication in the OJ (29 June 2023) … Continue Reading
On 7 June 2023, there was published on the legislation.gov.uk website The Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023. Together with FCA rules this Order will provide for the regulation of in-scope cryptoasset financial promotions. The Order:… Continue Reading
On 2 June 2023, the Council of the EU published the adopted text of the Regulation of the European Parliament and of the Council on markets in crypto-assets and amending Regulations (EU) No 1093/2010 and (EU) 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937. The text is dated 31 May 2023. The next step is for … Continue Reading
On 2 June 2023, the Council of the EU published the adopted text of the Regulation on information accompanying transfers of funds and certain crypto-assets and amending Directive (EU) 2015/849. The text is dated 31 May 2023. The next step is for the Regulation to be published in the Official Journal of the EU. It … Continue Reading
On 31 May 2023, the European Banking Authority (EBA) published a Consultation Paper setting out proposals to amend its guidelines on customer due diligence and the factors credit and financial institutions should consider when assessing the money laundering (ML) and terrorist financing (TF) risk associated with individual business relationships and occasional transactions (ML/TF Risk Factors … 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
On 17 May 2023, the House of Commons Treasury Committee published a report on regulating crypto, in which it calls for consumer trading in unbacked cryptoassets to be regulated as gambling. The key conclusions and recommendations set out in the report include: The Committee plans to continue to follow developments in this space as both … Continue Reading
On 16 May 2023, the Council of the EU issued a press release announcing that it had adopted the Regulation on markets in crypto-assets (MiCA). The Council adopted its negotiating mandate on MiCA on 24 November 2021. Trilogues between the co-legislators started on 31 March 2022 and ended in a provisional agreement reached on 30 … Continue Reading
On 5 May 2023, the FCA announced that it has taken further action against unregistered crypto ATMs across the UK. The FCA has used its powers to inspect sites in Exeter, Nottingham and Sheffield. The inspections were part of a joint operation with the South West Regional Organised Crime Unit, Yorkshire and Humber Regional Organised … Continue Reading
In light of recent market developments, firms in the FinTech space should be taking steps to review and enhance as needed their internal governance arrangements since these are key to mitigating the risk of misconduct and mistakes and consequential investigations, enforcement and claims, which can significantly impact not only the business but also its staff. … Continue Reading
On 27 March 2023, HM Treasury published a draft of The Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023, along with a draft explanatory memorandum. The draft statutory instrument (SI) proposes to expand the scope of the financial promotion restriction in section 21 of the Financial Services and Markets Act 2000 (FSMA), … Continue Reading
In the latest in our podcast series, Split the difference, which explores divergence between the EU and UK regulatory regimes in the markets space, Hannah Meakin, Albert Weatherill, Floortje Nagelkerke and Anna Carrier explore some of the markets dimensions of the regulatory reforms involving cryptoassets.… Continue Reading
This note provides a high-level comparison of some of the key areas of MiCA and the HMT Proposals. It is relevant to participants in EU and UK cryptoasset markets, including service providers and issuers, as well as institutional and retail investors. Readers should note that, since neither regime has been finalised yet, there may be … Continue Reading
By now you may have had the chance to review in greater detail the proposals published by HM Treasury on 1 February 2023 setting out the future direction of the UK’s regulatory framework for cryptoassets. If you haven’t you can read our summary here and our online briefing note here. Many in the industry are … Continue Reading
