BoE Publishes Joint Report on Approach to Cryptoassets and DLT
BoE published the joint HM Treasury, FCA, and BoE Cryptoassets Taskforce report that sets out the approach of UK to cryptoassets and distributed ledger technology (DLT) in financial services. The report provides an overview of cryptoassets and the underlying technology, assesses the associated risks and potential benefits, and sets out the path forward with respect to regulation in the UK.
The Taskforce concluded that robust action should be taken to address the risks associated with cryptoassets that fall within existing regulatory frameworks. Further consultation and international coordination is required for those cryptoassets that pose new challenges to traditional forms of financial regulation, and fall outside the existing regulatory framework. All three authorities plan to engage with international bodies to ensure a comprehensive response. BoE, in particular, will continue to monitor financial stability implications of cryptoassets; assess the adequacy of the prudential regulatory framework with respect to cryptoassets, in conjunction with international counterparts; and work toward enabling the renewed RTGS service to be capable of interfacing with innovative payment platforms, including those based on DLT.
The Cryptoassets Taskforce, which was launched in March 2018, had brought together HM Treasury, FCA, and BoE to develop an approach to cryptoassets and DLT that maintains the UK’s international reputation as a safe and transparent place to do business in financial services; the approach is also intended to ensure high regulatory standards in financial markets, protect consumers, guard against potential threats to financial stability, and allow innovators in the financial sector that play by the rules to thrive.
Related Link: Notification and Report
Keywords: Europe, UK, PMI, Banking, Securities, Fintech, Regtech, Crypto-assets, DLT, HM Treasury, FCA, BoE
Previous Article
CFTC Simplifies Rules on CCO Duties and Annual Compliance ReportingRelated Articles
EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
FASB Proposes to Delay Implementation of Insurance Contracts Standard
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB Set Out Recommendations for Benchmark Transition
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS Sets Out Recommendations for Benchmark Transition for Insurers
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA Updates Reporting Manual on European Single Electronic Format
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).
EBA Calls on Resolution Authorities to Consider Impact of COVID Crisis
EBA published a statement on resolution planning in light of the COVID-19 pandemic.
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
ECB Guideline on Materiality Threshold for Credit Obligations Past Due
ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.
FED Temporarily Revises FR Y-14 With Respect to PPP and CARES Act
FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.
