Along with its update on the regulation of fiat-backed stablecoins and the failure of systemic digital settlement asset firms (see related post here), on 30 October 2023, HM Treasury issued a policy statement on its approach to the future regulation of a wider range of cryptoassets. The Treasury’s statement largely confirms that it intends to implement the proposals consulted on in February 2023 – moving to a licensing regime for crypto activities and bringing a significant proportion of crypto related activities fully in-scope of Financial Conduct Authority authorisation requirements, based on a “same risk, same regulatory outcomes” philosophy. Although the move to a comprehensive crypto authorisation regime now looks certain, many aspects of that regime remain subject to secondary legislation and Financial Conduct Authority rulemaking and guidance, and there is some way to go before the full implications of the regime become clear for industry participants. Whilst timelines remain unclear, it possible that we will have draft legislation and FCA papers by the end of 2024; if that is the case, implementation could potentially follow in 2025. We take a detailed look at the Treasury’s policy statement in our full alert.
Mark Simpson is a partner in the Financial Services & Regulatory Group in the London office where he practices in the areas of financial regulation, financial crime, and regulatory investigations. He is a member of the Firm's EMEA Financial Services & Insurance Steering Committee, as well as its Global Funds and FinTech Groups. He participates actively in industry bodies including the Alternative Investment Managers Association. He has authored a number of articles and other publications, most notably acting as a general editor of and contributor to the International Guide to Money Laundering Law and Practice, and A Practitioner's Guide to the Law and Regulation of Financial Crime.
Sarah Williams is an associate in the financial services practice in London. Sarah advises a broad range of clients on financial services legal and regulatory issues. Sarah's practice includes advising on the regulation of payment services and electronic money, investment firms and consumer credit providers and anti-money laundering compliance issues.
Melody Hoay is an associate in the Financial Services & Regulatory Group in the London office. Melody's regulatory experience covers payments, cryptocurrency, ESG, capital markets, asset management, financial advisory and anti-money laundering work in the UK and Singapore. Prior to joining Baker McKenzie, Melody practised law at one of the largest leading law firms in Singapore in the financial regulatory and fintech team, and through that capacity was also a member of the legal team sitting on the ExCo of the Singapore FinTech Association in 2021. Melody has also given various talks on financial regulation, including two guest lectures on cryptocurrency regulation at a Singapore university. Melody graduated from the University of Oxford with a B.A. (Hons) in jurisprudence in 2017. She also topped the national Singapore Bar Examinations in 2019 and qualified in Singapore.
Kimberly Everitt is Baker McKenzie's knowledge lawyer for Financial Services Regulation & Enforcement, covering the EMEA region, and brings over a decade of experience to the team in both knowledge and fee-earning roles. Prior to joining Baker McKenzie, Kim held roles specializing in contentious financial services regulation knowledge, and her fee-earning roles covered non-contentious regulation in the private equity and general financial services sectors.