March 2, 2021

Volume XI, Number 61

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March 02, 2021

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March 01, 2021

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Cryptoassets Taskforce Publishes Final Report

On October 29, the UK “Cryptoasset Taskforce,” consisting of HM Treasury, the UK Financial Conduct Authority (FCA) and the Bank of England, published its final report setting out the United Kingdom’s policy and regulatory approach to cryptoassets and distributed ledger technology (DLT) in financial services. The Cryptoassets Taskforce was established in March 2018 as part of the United Kingdom’s strategy on the financial technology (FinTech) sector (for further details see here).

The report provides an overview of cryptoassets and DLT, assesses their associated risks and potential benefits, and sets out next steps regarding UK regulation. It also commits the relevant regulators to taking actions that will, for example, allow innovators in the financial sector to thrive if they comply, and that will maintain the UK’s international reputation as a safe and transparent place to do business in financial services. The report suggests the following actions, among others, to be taken by the relevant regulators:

  1. By the end of 2018, the FCA is to consult on guidance to clarify which cryptoasset activities are or should be regulated;

  2. By the end of 2018, the FCA is also to consult on potentially prohibiting the sale of derivatives based on cryptoassets to retail investors; and

  3. HM Treasury is to consult on transposing the Fifth Money Laundering Directive in the New Year and introduce new legislation in 2019, to further broaden the scope of anti-money laundering and counter-terrorism finance regulation.

The Cryptoassets Taskforce will also convene every six months to continue to monitor market developments and regularly review the United Kingdom’s regulatory approach to cryptoassets and DLT.

The final report is available here.

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©2020 Katten Muchin Rosenman LLPNational Law Review, Volume VIII, Number 308
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John Ahern, Financial Attorney, London, Katten Law Firm
Partner

John Ahern, partner at Katten Muchin Rosenman UK LLP and head of the London Financial Services group, focuses his practice on banking, financial services, UK and European financial markets, and related regulations. His background in private practice and as in-house counsel at a global investment bank provides him with perspective on the unique regulatory issues facing the wholesale and private banking sectors. John advises multilateral trading facilities, broker-dealers and banks on trading, clearing and settlement as well as custody of securities—both physical and...

+44 (0) 20 7770 5253
Carolyn H. Jackson, International Attorney, Katten Muchin law firm
Partner

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws...

+44 0 20 7776 7625
Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring...

+44 0 20 7776 7629
Neil Robson, private equity fund managers counselor, Katten Law Firm, London
Partner

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...

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