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Sue McLean

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A UK Government-backed, industry-led initiative has published an expert legal statement recognising cryptoassets as property and smart contracts as enforceable agreements under English law. The statement is published by the UK Jurisdiction Taskforce (UKJT), a taskforce of the UK’s Lawtech Delivery Panel. The report concludes that: Cryptoassets are, in principle, to be treated as property under English law. They are not disqualified from being property by their distinctive features (intangibility, cryptographic authentication, use of a…

A number of recent developments in Ukraine have demonstrated the country’s focus on promoting a blockchain friendly ecosystem. At a government level, the recently established Ministry of Digital Transformation (MDT) (available in Ukrainian only) is actively promoting a friendly regulatory environment for blockchain/cryptocurrency projects in Ukraine, in both the public and private sectors. To further this aim, the MDT has kicked off various initiatives in order to promote blockchain, including recently hosting a meeting (available…

IOSCO (the International Organization of Securities Commissions)  has recently published a consultation focusing on how platforms which trade crypto-assets are regulated. The global standards setting body considers that promoting innovation must be balanced with appropriate regulatory oversight. For these purposes, IOSCO defines crypto-assets broadly as “a type of private asset that depends primarily on cryptography and DLT or similar technology as part of its perceived or inherent value, and can represent an asset such as…

The UK’s Financial Conduct Authority has published draft guidance for market players in the developing cryptoassets sector (see CP19/3). This follows a report published last autumn by the UK’s Cryptoasset Taskforce (consisting of the FCA, PRA and Treasury) that explores the UK’s approach to cryptoassets and distributed ledger technology. The FCA has been a relatively late mover in producing practical guidance on crypto compared to other regulators internationally, but was it worth the wait? The…

On 9 January 2019, the European Securities and Markets Authority (ESMA) published advice on ICOs and cryptoassets to the European Commission and other EU institutions.  This development is very much part of the international trend in favour of regulating cryptoassets.  The advice identifies gaps and issues with current EU regulation (or, rather, the absence of it).  For those cryptoassets which are caught by financial regulation, ESMA describes the current regime as inadequate, as it was…

Cryptoassets continue to be a hot topic for financial services regulators. On 19 October 2018, it was the turn of the Securities and Markets Stakeholders Group (“SMSG“), which represents various stakeholders’ interests to the European Securities Markets Authority (“ESMA“). The SMSG published a report setting out its advice to ESMA on how to contain the risks of cryptoassets and ICOs.

Our blog reports on blockchain developments around the world and across industries. For those of our readers interested in some blockchain basics, Baker McKenzie has just published “Unhashing Blockchain: Blockchain Explained.”  In it, we provide an overview of blockchain technology, discuss how it is being used and identify the legal issues that will arise (or have already arisen) in connection with this nascent technology.

In February 2018, the UK Treasury Committee launched an inquiry into digital currencies.  In the course of its inquiry the Committee received oral and written evidence from a number of key players in the crypto space, including representatives from Ripple, CryptoUK and Blockchain, together with evidence from the FCA (the UK financial services regulator), the Bank of England and HM Treasury. Earlier than expected, the Treasury Committee published its crypto-assets report and conclusions and recommendations…

The EU Blockchain Observatory & Forum (EBOF) launched in February 2018 has published its first thematic report outlining the current state of blockchain in Europe. It’s a pretty broad report, but does provide a helpful overview of progress to date and give some useful insight into the EU’s priorities. Europe: fertile ground for blockchain growth and innovation? EBOF views Europe as being in a prime position for blockchain technologies. The report outlines recent and ongoing…

On 18 July 2018 the European Parliament Committee on Internal Trade (“CIT”) published a draft report setting out a motion for a European Parliament Resolution regarding how blockchain could be harnessed to enhance international trade and supply chain management. The report focuses on the use of permissioned (private) blockchain solutions. Blockchain  Benefits   The CIT believes that blockchain provides enormous opportunities for reducing barriers within global trade. In particular, the potential benefits of permissioned blockchain…