Digital Currencies Governance Group (DCGG): May Newsletter

Posted on 31 May 2024

European Union

Panel discussion on CBDCs at the Conf3rence

J?rn-Jakob R?ber, Head of EU Policy at DCGG, spoke at the Conf3rence in Dortmund in a panel discussion on the “Digital Money Evolution: The Rise of Central Bank Digital Currencies.” The event that took place on 15 and 16 May is one of the biggest Web3 and crypto conferences in Germany. Panelists discussed the likelihood of CBDCs emerging within the next 5 years in practice, despite some lingering doubts and reservations about the use case, particularly for retail CBDCs in Europe.

Presentation on crypto business models at the EUI?

J?rn-Jakob R?ber, Head of EU Policy at DCGG, presented and discussed crypto industry business models at the European University Institute (EUI) in Florence to an audience of European and national regulators involved in the implementation and application of the Markets in Crypto-Assets Regulation (MiCAR).

United Kingdom

DCGG provides feedback to the HMRC on crypto tax

On May 29, the UK tax authority HM Revenue & Customs (HMRC) closed its call for evidence on the domestic implementation of the Organisation for Economic Cooperation and Development’s ( OECD - OCDE ) Crypto-Asset Reporting Framework (CARF), with the objective to establish a regime that appropriately and effectively identifies and mitigates tax non-compliance associated with the use of cryptoassets in the UK, but also supports wider sector growth through standardized reporting requirements.

DCGG welcomed the opportunity to share its views on the HMRC’ proposal and extended a series of recommendations on the definition of a “Reporting Crypto-Asset Service Provider”. In particular, we highlighted that the terminology around "effectuating exchange transactions" and "exercising control or sufficient influence over a platform" may lead to ambiguity as to what activities would be captured under this definition. DCGG urged the HMRC to consider the nuances when enforcing the CARF on crypto-asset firms, specifically by taking into account the nature of the service provided and the need for further detail and specific exclusions of CASPs that provide access to third-party applications but do not have the technical capability to control user transactions themselves, nor have access to the personal data of their customers, from the scope of the framework.

City Week London

On May 21, Digital Currencies Governance Group (DCGG) represented by Stefani Aleksandrova, participated in the City Week London 2024 Tokenisation and Digital Asset Leaders Summit. This event convened financial service firms and policy officials to explore the future of Distributed Ledger Technology (DLT) and its transformative potential for the financial services sector.

Discussions delved into the wide-ranging implications of DLT, from enhancing operational efficiency and security to enabling innovative financial products. The summit also addressed critical policy considerations, ensuring that regulatory frameworks evolve in step with technological advancements. It was a valuable opportunity for industry leaders and policymakers to exchange insights and collaboratively shape the trajectory of digital assets and tokenisation in the global financial landscape.

FCA Roundtable: Trading Venues and Intermediaries

Joshua Townson, our Head of UK Policy, attended the Financial Conduct Authority headquarters in London for an invitation-only event focused on bringing together policy professionals from across the crypto sector to discuss regulatory proposals and considerations related to trading venues and intermediaries. Discussions focused on topics such as how to ensure operational resilience, best execution, pre-funding, and how to adapt existing rules and apply them to the crypto sector.?

DigiAssets Conference

Joshua Townson, Head of UK Policy, and Stefani Aleksandrova, Public Affairs Officer, attended the DigiAssets Conference in London to meet with and hear from various crypto stakeholders. The event focused on institutional markets and the impact of crypto within traditional finance and trading.