Topic: Cryptoassets cryptocurrencies stablecoins and cbdcs

Crypto service providers (cryptodienstverleners) currently registered with the Dutch Central Bank (De Nederlandsche Bank, DNB) will soon have increased clarity regarding the customer due diligence required for their banking transactions. This clarity is being provided through the new sector standard established by the Dutch Banking Association (Nederlandse Vereniging van Banken, NVB) for risk-based customer due diligence in crypto service providers. The sector standard was developed following a series of roundtable discussions involving the Association of Bitcoin Companies Netherlands (VBNL), several of NVB’s members and DNB. With this sector standard in place, banks can conduct their customer due diligence in a risk-based manner, providing both banks and crypto service providers with a clear understanding of expectations and the types of inquiries to anticipate.

On 14 November 2023, the European Central Bank published a speech by Andrea Enria (Chair of ECB Supervisory Board) entitled ‘Regulating crypto finance: taking stock and looking ahead’.

On 2 November 2023, the FCA published Finalised Guidance FG23/3: Finalised non-handbook guidance on cryptoasset financial promotions (FG23/3).

On 31 October 2023, the Bank for International Settlement’s Committee on Payments and Market Infrastructures (CPMI) published a report on considerations for the use of stablecoin arrangements in cross-border payments.

On 6 November 2023, the Financial Conduct Authority (FCA) and Bank of England (BoE) published discussion papers on their proposed approach to regulating stablecoins, and the Prudential Regulation Authority (PRA) published a Dear CEO letter on innovative uses of deposits, e-money and stablecoins. The FCA, BoE and PRA also published a joint “roadmap paper” aimed at explaining how the proposed regimes interact and the regulators’ proposed approach for dual regulation.

On 24 October 2023, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published an update on the implementation of the Markets in Crypto-Assets Regulation (Regulation (EU) 2023/114, MiCA). The AFM refers to the recent statement of the European Securities and Markets Authority (ESMA). In this statement, ESMA calls on the various European supervisors to align their supervisory practices with regard to MiCA to prevent regulatory arbitrage and to promote a level playing field. The AFM emphasises that clear supervision is important for the maturity and reliability of the crypto market and that the AFM is committed to strong supervision.

On 20 October 2023, the European Banking Authority (EBA) published for consultation two draft regulatory technical standards (RTS) that it is mandated to develop under the Regulation on markets in crypto-assets (MiCA):

On 17 October 2023, the European Securities and Markets Authority (ESMA) published a statement, clarifying the timeline for MiCA and encouraging market participants and Member State national competent authorities (NCAs) to start preparing for the transition.

On 16 October 2023 the Australian Federal Treasury released its public consultation paper regarding the proposed regulatory regime for digital asset platforms. The proposed framework highlights the Australian Government’s intention to ensure consistent oversight and safeguards for consumers by regulating digital asset platforms and other intermediaries within the existing Australian Financial Services Licence (AFSL) regime and introducing a new type of financial product called a ‘digital asset facility’. The announcement can be found here.

On 17 October 2023, the European Securities and Markets Authority (ESMA) published a letter to Member State national competent authorities (NCAs), where it sets out its proposed approach to ensure a smooth transition towards the upcoming application of the Markets in Crypto-Assets Regulation (MiCA).