HM Treasury consults on regulation of cryptoassets other than stablecoins (February 2023)
HM Treasury has proposed a comprehensive regulatory regime for firms engaging in certain cryptoasset activities. It is enabled by the addition of a new Clause 65 into the Financial Services and Markets Bill (FSMB), which will allow HM Treasury to expand the UK's regulated activities framework to encompass cryptoasset related activities. This latest consultation on wider (non-stablecoin) cryptoassets builds on previous discussion papers and consultations, and complements other proposals in the FSMB to introduce a regime that will allow for the regulation of fiat-backed stablecoins which are used for payments (termed "Digital Settlement Assets").
Exposures to cryptoassets– new prudential rules for banks from 2025 (December 2022)
Following two previous consultations over the past 18 months, the Basel Committee on Banking Supervision (BCBS) has published its finalised prudential standard on banks' cryptoasset exposures (. The new prudential standard (the Cryptoassets Standard) applies to banks' exposures to digital assets, including tokenized traditional assets, stablecoins, and unbacked cryptocurrencies. The Cryptoasset Standard sets the prudential framework for such exposures, by imposing capital charges depending on the type of asset and activity. The finalised framework has more flexibility than the version consulted on in June 2022, which had been criticised by the industry for its potential to render banks' crypto holdings commercially unviable.. We look at what the final proposals say and the impact for market participants.
Update on Hong Kong's new licensing regime for virtual asset service providers (December 2022)
Hong Kong has passed legislation introducing a new licensing regime for virtual asset service providers. The timeline for the commencement of this regime has also been postponed. In this blog post, we outline key concepts under the new regime and summarise the revised timeline for its commencement.
The UK consults on revoking and replacing the PRIIPs Regulation (December 2022)
The UK is proposing to overhaul the disclosures that must be provided to UK retail investors in financial products by repealing the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation and replacing it with a more flexible disclosure regime administered by the UK's Financial Conduct Authority (FCA).
Hong Kong to allow retail access to virtual asset exchange traded funds and considering legalising retail virtual asset exchanges (November 2022)
Hong Kong has announced several fundamental virtual asset-friendly changes to the city's regulatory stance towards virtual assets, including the relaxation of rules surrounding retail access. This RegTalk blog post summarises the proposed changes and their impact.
The New UK Financial Services and Markets Bill: Speed-read (August 2022)
On 20 July 2022, HM Treasury laid the UK's new Financial Services and Markets Bill before Parliament. This major piece of post-EU legislation makes significant changes to the structure and content of UK financial services regulation. Here are our top five takeaways.
Evolving landscapes: creating a taxonomy of regulatory divergence (August 2022)
Since Brexit and the end of the transition period, UK and EU financial services regulation has begun to evolve and, in several cases, diverge.
New Omnibus Act for Singapore's financial sector – Financial Services and Markets Act 2022 (April 2022)
A new financial-sector wide legislation, the Financial Services and Markets Act 2022, will be introduced in Singapore to enhance the regulator's effectiveness in addressing financial sector-wide risks. The new Act potentially impacts financial institutions (FIs) and virtual asset service providers (VASPs), for the reasons explained below.
MiCA – Where are we now? (April 2022)
Trialogues relating to the proposed Regulation on markets in crypto-assets (MiCA) are underway between the European Commission, Council and Parliament. We examine the overlaps and potential outcomes of these discussions.
Increased custody liability – proposed reforms to EU funds legislation and new rules for crypto-asset markets (April 2022)
Under the European Commission's proposed reforms to AIFMD and UCITS V and the various drafts of the EU Markets in Crypto-assets Regulation ("MiCA"), including the latest European Parliament version, depositaries and custodians of funds and custodians providing services regarding crypto-assets could become subject to increased liability and other obligations.
CRD6 – new EU rules for bank M&A (March 2022)
The Capital Requirements Directive (or CRD) is the principal EU banking directive. It covers not only capital requirements but also remuneration, governance, licensing and more. It has been amended several times over the years, and in November 2021, the Commission published a proposal for its first post-Brexit overhaul: CRD6.
EU AIFMD2 - A paper tiger? (February 2022)
The European Commission published its legislative proposal for AIFMD2 on 25 November 2021 (the "Proposal")]. The Proposal is a mixed bag, with some potentially problematic provisions (for example, new rules on liquidity risk management) but also some potential opportunities (for example, in respect of pan-EEA loan origination). The Proposal will be modified further as it progresses through the legislative process, as a result of input from the European Parliament and European Council.
Are we still allowed to talk crypto? New proposals for the regulation of cryptoasset promotions (February 2022)
In January 2022, both HM Treasury (HMT) and the FCA published new proposals for the regulation of the promotion of certain cryptoassets.
Future changes to the EU and UK regimes for the trading of bonds and derivatives (February 2022)
The Markets in Financial Instruments Regulation (MiFIR) introduced transparency requirements for non-equity asset classes such as bonds and derivatives and introduced a derivatives trading obligation (DTO) requiring the most liquid derivatives to be traded on EU trading venues or equivalent non-EU venues. Similar requirements have been retained in the UK as part of the onshoring of EU law following the UK's exit from the EU.
EU: Guidelines on marketing communications relating to the cross-border distribution of funds coming into force (January 2022)
ESMA's guidelines on marketing communications under Regulation on cross-border distribution of funds (EU 2019/1156) dated 2 August 2021 will apply from next week, 2 February 2022.
EU: No action on CSDR mandatory buy-ins whilst delay is formalised (January 2022)
The European Securities and Markets Authority (ESMA) has published its long-awaited forbearance statement asking competent authorities "not to prioritise supervisory actions" with respect to mandatory buy-in (MBI) requirements under the EU Central Securities Depositories Regulation (CSDR), pending a formal delay of the rules.