Supranational, EU and UK regulation of cryptoassets
Supranational, EU and UK regulation of cryptoassets

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Supranational, EU and UK regulation of cryptoassets
  • What are cryptoassets?
  • General approach to scrutiny of cryptoassets
  • Why is it difficult to regulate cryptoassets?
  • Treatment of cryptoassets at supranational level
  • IOSCO reports
  • FSB global stablecoins recommendations
  • BCBS Discussion paper
  • The European Union treatment of cryptoassets
  • EBA warnings and opinions
  • More...

This Practice Note focuses on the approach of UK and EU regulators and governments to the regulation of cryptoassets and considers the approach taken by supranational bodies such as the International Organisation of Securities Commissions (IOSCO) (the international body that brings together the world's securities regulators), the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS) (the primary global standard setter for the prudential regulation of banks). It also provides some background to the meaning of cryptoassets and the unique challenges that cryptoassets pose to regulators.

What are cryptoassets?

One of the hurdles in relation to understanding non-traditional currencies and assets lies in the inconsistent use of language. Regulators and tax authorities, as well as commentators, refer variously to cryptoassets, digital currencies, virtual currencies, cryptocurrencies, and crypto tokens, and it is not always clear whether they are using the terms interchangeably or with the specific meaning of each in mind. For more information about how these terms are defined, see Practice Note: cryptoassets—essentials.

In this Practice Note, the term ‘cryptoasset’ is used as described in the European Securities and Markets Authority’s (ESMA) Securities and Markets Stakeholder Group’s (SMSG) October 2018 Own Initiative Report on Initial Coin Offerings and cryptoassets (the SMSG Own Initiative Report) and the Financial Conduct Authority’s (FCA) consultation paper CP19/3: Guidance on cryptoassets (CP19/3). In the SMSG Own Initiative Report, ‘cryptoasset’

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