On 12 May 2022, the FCA published a new webpage regarding the two-day CryptoSprint event that it held recently which explored how cryptoassets could be regulated in the UK. Over the event, participants worked in mixed-discipline teams to explore some of the challenges facing the industry, including how the FCA can support and balance innovation … Continue Reading
The European Insurance and Occupational Pension Authority (EIOPA) has published its feedback statement on its 2021 discussion paper on blockchain and smart contracts in insurance. EIOPA received a number of responses to its earlier paper and has summarised these in the statement. Stakeholders were able to identify a number of use cases for blockchain. The … Continue Reading
On 21 April 2022, the Council of the EU published a table regarding the proposed Regulation on information accompanying transfers of funds and certain crypto-assets (recast). The table has three columns setting out the European Commission’s proposal and the European Parliament and Council mandates.… Continue Reading
Introduction On 4 April 2022, HM Treasury published a response to its earlier consultation and call for evidence on the UK regulatory approach to cryptoassets, stablecoins and distributed ledger technology (DLT) in financial markets. Through its consultation, the government proposed a staged and proportionate approach to cryptoasset regulation, which is sensitive to risks posed and … Continue Reading
On 1 April 2022, the Council of the EU published a three-column table to commence trilogues on the proposed Regulation on markets in crypto-assets (MiCA). The table shows the position adopted by the European Commission, European Parliament and the Council on MiCA.… Continue Reading
On 30 March 2022, the FCA updated its webpage concerning its role as the anti-money laundering and counter-terrorist financing supervisor of UK cryptoasset businesses under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Specifically, the FCA has provided an update on the temporary registration regime for cryptoasset businesses … Continue Reading
On 24 March 2022, the FCA published a statement regarding the existing obligation that all FCA regulated firms have when interacting with or exposed to cryptoassets. Some areas of risks that need to be considered are: Being clear with customers – firms are responsible for identifying and managing risks relating to cryptoassets and firms must … Continue Reading
On 24 March 2022, the PRA published a Dear CEO letter it had sent to dual regulated firms concerning how the prudential framework applies to ensure that firms engaging in crypto activity manage the risks in a way that supports the firm’s safety and soundness. The PRA has issued this Dear CEO letter as it … Continue Reading
On 24 March 2022, the Bank of England (BoE) published, ‘Financial Stability in Focus: Cryptoassets and decentralised finance (DeFi)’ which sets out the Financial Policy Committee’s (FPCs) view on specific topics which relate to financial stability. The publication focuses on: the role of cryptoassets and decentralised finance in the financial system; financial stability implications of … Continue Reading
On 15 March 2022, the Financial Markets Law Committee published a letter that it had sent to HM Treasury highlighting some examples of legal uncertainty as regards the proposals in HM Treasury’s response to its 2020 consultation on cryptoasset promotions and the FCA’s consultation on strengthening financial promotion rules for high-risk investments, including cryptoassets.… Continue Reading
On 14 March 2022, the Committee on Economic and Monetary Affairs (ECON) published a press release on the European Parliament’s website regarding new rules on cryptocurrencies in the EU. The press release reports that members of European Parliament (MEPs) have agreed on draft rules concerning the supervision, consumer protection and environmental sustainability of cryptoassets, including … Continue Reading
On 16 February 2022, the Financial Stability Board (FSB) published its report, ‘Assessment of Risks to Financial Stability from Crypto-assets’. The report examines developments and associated vulnerabilities relating to three segments of crypto-asset markets which are, unbacked crypto-assets, stablecoins, and decentralised finance and crypto-asset trading platforms. The report also highlights a number of vulnerabilities associated … Continue Reading
