Regulations Roundup – August 2019

Summer may be in full swing, but that doesn’t mean the finance sector can slacken the reins and take a chill. Far from it. Rules and regulations are hotter than ever. So be sure to stay informed with our Regulations Roundup – August 2019. Here’s what we’ve unraveled.

FCA to Clarify Crypto-Assets Regulation

Regulating the crypto industry is no walk in the park. But steps are being taken to ensure investors are as safe as possible. The Financial Conduct Authority (FCA) is publishing its final guidance which sets out the crypto-asset activities it regulates. The guidance will help firms to understand whether their crypto activities fall under FCA regulation, whether they need to be authorised and what they need to do to stay compliant. The guidance follows FCA rules published earlier in the year.

Christopher Woolard, Executive Director of Strategy and Competition at the FCA, stated:

‘This is a small, complex and evolving market covering a broad range of activities. Today’s guidance will help clarify which crypto-asset activities fall inside our regulatory perimeter.”

Security tokens are a particular area of focus. The FCA said: “Any token that is not a security token, or an e-money token is unregulated. However, market participants should note certain activities that use tokens may nevertheless be regulated, for example, when used to facilitate regulated payments.”

Top tip: The guidance will make it clear which crypto assets fall inside the regulatory perimeter clearer. Staying informed will ensure you’re always compliant. You can visit FCA’s news page for all the latest.

ESMA Updates on MiFID II Data Reporting

The European Securities and Markets Authority (ESMA) has published an updated version of its MiFID II Q&As regarding data reporting. A new question was inserted within section 5- Maturity Date, expiry date and termination date. The question reads as follows:

“What date should be populated in Field 24 (Expiry date) of RTS 23 for financial instruments without a defined expiry date [e.g. perpetual FX Rolling Spot Futures] for which the population of Field 24 is mandatory according to the CFI validation rules?”

The answer is this:

For instruments without a defined expiry date for which the population of Field 24 (Expiry date) is mandatory according to the CFI validation rules [e.g. perpetual FX Rolling Spot Futures] Field 24 should be populated with the value 9999-12-31 (in accordance with the ISO format). In case the expiry date becomes determined during the life cycle of the financial instrument, Field 24 should be updated accordingly.

Top tip: While the regulations governing the finance sector are overbearing, following specific rules offers a structured way of working. Keep an eye on the ESMA news section for updates.

France’s AMF Considers Experimental Crypto Regulatory Framework

France’s top financial watchdog, AMF, is considering launching an experimental regulatory framework for crypto firms. This will include consumer protection protocols, as well as tax mandates and capital requirements. Crypto firms will voluntarily abide by the rules should they wish to gain regulatory approval. AMF Executive Director for Legal Affairs, Anne Marechal, believes the regulatory experiment to be a “precursor” for global crypto-specific legislation, instead of having an inappropriate application of financial regulations created even before the rise of digital assets.

Top tip: Follow news updates here to ensure you’re up-to-date with the latest from AMF.

August 2019 Events Calendar

  • BlockBatam Blockchain Conference – 7th August – Indonesia
  • Blockchain Futurist Conference – 14th August – Canada
  • ELEV8 – 14th August – New York
  • Bloconomic Expo – 15th August – Malaysia
  • Blockchain Conference Hamburg – 17th August – Germany
  • Blockchain Summit Singapore – 20th August – Singapore

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