Jan 2, 2023
KEY TAKEAWAYS:
In the column for December 2023, Lucy focuses on the UK government’s approach to perimeter issues in areas that give rise to questions from clients in practice (such as tokenised investment vehicles, airdrops, third-party custody and staking), which are addressed in the government’s October 2023 response to its consultation and call for evidence on the future financial services regulatory regime for cryptoassets.
UK government’s response to consultation and call for evidence on the future financial services regulatory regime for cryptoassets
Following a consultation issued in February 2023, the UK government has now confirmed its final proposals for cryptoasset regulation in the UK, in the form of a response and call for evidence on the future financial services regulatory regime for cryptoassets (Response) (see Practice note, Hot topics: UK cryptoassets regulatory developments: Phase 2: UK regulatory approach to cryptoassets).
However, certain questions about the regulatory perimeter in areas that are still at an early stage of evolution have been left unanswered by global policymakers to date. It is useful, therefore, for cryptoasset practitioners worldwide to see the UK government’s approach, as it may inform the analysis in jurisdictions that have not yet reached conclusions.
This column focuses on those topics, discussing some key takeaways on where tokenised investment vehicles, cryptoasset issuances and sales, arranging custody, staking, NFTs and DeFi are likely to fall relative to the regulatory perimeter. The terms “cryptoasset” and “virtual asset” are used interchangeably in this column.
This document is published by Practical Law and can be found, here.
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