UK cryptoasset regulation – What happened in 2023 and what’s coming in 2024? The pace of change continues to be astonishing. Here are some of the highlights. What happened in 2023? > Bank of England & HM Treasury Consultation Paper (February 2023) – The digital pound > UK Law Commission – Final Report on Digital Assets (June 2023) > Financial Services and Markets Act 2023 enacted (June 2023), providing for the establishment of regulatory regimes for fiat-backed stablecoins and related payment systems > HM Treasury Consultation (February 2023) & Response (October 2023) – Future financial services regulatory regime for cryptoassets > Travel Rule for cryptoassets introduced (September 2023, following legislation enacted in July 2022) > Financial Promotions regime expanded to cover qualifying cryptoassets (October 2023, following legislation enacted in June 2023, supported by FCA rules (PS23/6) and guidance (GC23/1)) > HM Treasury Consultation Paper (May 2022) & Response (October 2023) – Managing the failure of systemic digital settlement asset (including stablecoin) firms > Financial Conduct Authority (FCA) Discussion Paper (DP23/4) – Regulating cryptoassets Phase 1: Stablecoins (November 2023) > Bank of England Discussion Paper – Regulatory regime for systemic payment systems using stablecoins and related service providers (November 2023) > Bank of England & Prudential Regulation Authority (PRA) ‘Dear CEO’ Letter – Innovations in the use by deposit-takers of deposits, e-money and regulated stablecoins (November 2023) > Bank of England, FCA & PRA – Cross-authority roadmap on innovation in payments (November 2023) > Digital Securities Sandbox legislation enacted (December 2023, following HM Treasury consultation) What’s coming in 2024? > 8 January 2024: Digital Securities Sandbox legislation comes into effect > 8 January 2024: End of extended deadline for compliance with certain cryptoasset financial promotion rules (e.g. 24-hour cooling off period) for firms who applied for extension > 6-7 February 2024: Application window for financial promotions approval gateway closes and legislation comes into effect, meaning firms who have not applied are no longer permitted to approve financial promotions of unauthorised persons > 6 February 2024: Deadline for submission of responses to FCA Discussion Paper (DP23/4) – Regulating cryptoassets Phase 1: Stablecoins > 6 February 2024: Deadline for submission of responses to Bank of England Discussion Paper – Regulatory regime for systemic payment systems using stablecoins and related service providers > H2 2024: FCA and Bank of England to finalise rules for consultation on regulatory regimes for fiat-backed stablecoins and related payment systems, per discussion papers (November 2023) > H2 2024: Secondary legislation to be laid before Parliament providing for ‘Phase 2’ establishment of full regulatory regime for cryptoassets, per HM Treasury consultation response (October 2023)
Bloody hell! It’s going to be a busy year, isn’t it??
A useful summary, best approached with caffeine in hand!
Bharat Web3 Association
CEO at Margin Syndicate | 25+ Years in IT, Crypto & Financial Markets | Expert in HFT, Arbitrage and Trading Systems | Advocate for Privacy, Decentralisation & Monero | Cypherpunk and Crypto Capitalism Proponent
1 年I don't see any evidence of increased investment following this legislation from my own perspective. Perhaps there is elsewhere, but I only see companies leaving jurisdiction.