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In today’s episode of PayTechTalk, I talk to crypto and Blockchain experts James Burnie (gunnercooke) and Alireza Siadat (Annerton) about Blockchain and crypto regulation – from both the UK and the German perspective. Here’s what we’ll be specifically covering:
The Crypto and Blockchain regulatory environment in the UK
The UK is currently regulating Blockchain and Crypto differently compared to other EU member states. The UK has implemented the AMLD5 and has developed a regulatory framework for the treatment of crypto assets based on a case-by-case qualification rather than having a crypto assets act. The regulatory treatment of crypto assets differs between the crypto assets (payment vs. utility vs security token) and the services or promotion provided.
Different crypto regulatory regime in Germany
With the implementation of the AMLD5, Germany became the first EU member state to regulate crypto assets and crypto custody services by the German Banking Act. Firms from abroad (e.g. UK) are not allowed to provide their crypto related services cross-border to the German market.
Future of crypto regulation in the UK in a global context
The UK is developing a unique crypto regulatory environment. Post-Brexit, the UK may develop a FinTech regulatory environment which is unique in the global context. Looking at the US market, where it was published that US banks are allowed to provide crypto custody services, we see that crypto regulation is becoming more and more different in each jurisdiction.
Enjoy PayTechTalk 54!
Further information and related links:
- https://www.fca.org.uk/firms/financial-crime/cryptoassets-aml-ctf-regime
- https://www.fca.org.uk/publication/policy/ps19-22.pdf
- https://www.fca.org.uk/publication/consultation/cp19-03.pdf
- https://35z8e83m1ih83drye280o9d1-wpengine.netdna-ssl.com/wp-content/uploads/2019/11/6.6056_JO_Cryptocurrencies_Statement_FINAL_WEB_111119-1.pdf
- http://thinkblocktank.org/wp-content/uploads/2019/10/thinkBLOCKtank-Token-Regulation-Paper-v1.0.pdf
- https://www.gov.uk/government/consultations/cryptoasset-promotions
- https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Merkblatt/mb_200302_kryptoverwahrgeschaeft_en.html
- https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12089-Directive-regulation-establishing-a-European-framework-for-markets-in-crypto-assets/public-consultation
About James Burnie and gunnercooke
James Burnie: James is a Partner at gunnercooke. He advises a wide range of firms on financial services regulation and FinTech. He advises financial institutions on all aspects of EU and UK financial regulation. This includes advisory, project and transactional work in connection with the Markets in Financial Instruments Directive, the Capital Requirements Directive and Regulation, the FCA Handbook and PRA Rulebook (including conduct of business obligations and financial promotions), the Alternative Investment Fund Managers Directive and regulatory perimeter questions.
gunnercooke is a challenger law firm comprising solely of commercially-driven senior lawyers who advice the UK FinTech and Blockchain industry.
- https://gunnercooke.com/people/james-burnie/
- https://gunnercooke.com/
- https://gunnercooke.com/practice-area/blockchain-cryptoassets-smart-contracts-and-defi/
Cover picture: Copyright © PayTechLaw
