Regulation of Cryptoassets

In a chapter for The Law Society’s third edition of its Blockchain: Legal & Regulatory Guidance, Chloe Kearns has co-authored a section titled “Regulation of Cryptoassets”. The section sets out an overview of the current and proposed UK regulatory landscape for cryptoassets, a brief outline of the wider international regulatory context, and certain recommendations for UK regulators when designing the regulatory framework.

“At present, there is no specific UK regulatory regime for cryptoassets, other than in relation to anti-money laundering (AML) and counter-terrorist financing requirements for cryptoasset exchange providers and custodian wallet providers. Currently, the UK’s approach to the regulation of cryptoassets is to consider which types of cryptoassets fall within the perimeter of the existing regulatory framework, based on a case-by-case analysis of the relevant cryptoasset’s substantive characteristics. For those types of cryptoassets that do fall within the regulatory perimeter, different regulatory rules may apply depending on whether they are characterised as transferable securities, a deposit, electronic money (e-money) or another type of regulated financial instrument.”

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