Digital assets: Law Commission consults on private international law issues and draft legislation recognising a third category of personal property rights

On 22 February 2024, the Law Commission published two documents relating to digital assets: (i) a call for evidence on private international law issues relating to digital assets and electronic trade documents; and (ii) a consultation on draft legislation to confirm the existence of a third category of personal property for assets such as crypto-tokens.

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Hong Kong lays out comprehensive guidance on crypto and tokenised securities-related activities by intermediaries, along with guidance on tokenisation of investment products

Since the new licensing regime for virtual asset trading platforms (VATPs) came into effect on 1 June 2023, allowing retail access to VATP services, the Securities and Futures Commission (SFC) has made further strides in expanding retail access in the virtual asset (VA) ecosystem. Continue reading

Cryptoasset Regulation: UK government publishes policy papers on future regulation of cryptoassets and fiat-backed stablecoins

On 30 October 2023, the government published three policy documents on cryptoassets regulation in the UK, covering fiat-backed stablecoins, the wider cryptoasset regulatory regime and the failure of systemic digital settlement asset (DSA) firms.

On the whole, the updates confirm the approaches previously proposed. However, much of the detail will only emerge in the next phase once secondary legislation and regulators’ rules have been published. Continue reading

HM Treasury publishes draft statutory order regulating UK crypto marketing

Overview

This week, the government published the draft Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023 (Order) along with an explanatory memorandum. This is the latest in a raft of measures enhancing the UK’s oversight of cryptoasset activities, raising consumer protection standards while providing greater certainty for business. The Order follows the government’s previous consultation back in July 2020 and later responses in January 2022 . Continue reading

Government publishes non-stablecoin cryptoasset Consultation and Call for Evidence

HM Treasury (HMT) has published its long-awaited consultation (Consultation) and call for evidence (Call for Evidence) on the regulation of cryptoassets that are NOT stablecoins, e-money or already regulated by virtue of amounting to a traditional financial services instrument (a share, bond, unit in a fund, derivative, etc). Its scope is broad and captures a whole swathe of cryptoassets including cryptocurrency such as Bitcoin, as well as non-fungible tokens (NFTs). Continue reading

BCBS Standard on Prudential Treatment of Cryptoasset Exposures: What Does This Mean for Banks?

On 16 December 2022, the Basel Committee on Banking Supervision (the “BCBS“) published its much-anticipated standard on the prudential treatment of cryptoasset exposures (the “Standard“), which will be incorporated into the consolidated Basel Framework in due course. Publication of the Standard follows two related consultations published by the BCBS in June 2021 and June 2022.

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Need for caution in marketing cryptoassets (Moneybrain Ltd v The Financial Conduct Authority)

Stablecoins, whose value is pegged to fiat currency, gold or other assets ostensibly to avoid the fluctuations typical of cryptocurrencies, have become increasingly popular. However, the crypto industry (including stablecoins such as TerraUSD and LUNA) has been experiencing prolonged distress, prompting regulatory concerns and an increased focus on consumer protection in this context.

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