Financial institutions offering crypto-related services are expected to assess, address, and mitigate the risks associated with these cryptoassets, which includes fulfilling their anti-money laundering and combatting the financing of terrorism (AML/CFT) obligations.
Our new episode of FInsight: Global Financial Institutions Industry Podcast is the second of two episodes focusing on cryptoassets and regulatory developments, taking off from our publication Crypto around the World. In this episode, Sue McLean, a Partner in our London office and global tech lead for fintech talks to the team that started this project: Iris Barsan, counsel from our Paris office, Julian Hui, associate from our London office, and Chris Murrer, a US attorney in our Zurich office.
Key highlights of the episode include:
- There are varying approaches how regulators tackle market abuse and similar types of risks related to cryptoassets, but there are loopholes. New EU rules on cryptoassets are designed to close some of these loopholes.
- Environmental-, Social-, and Governance-related concerns need clarity, and should address these primary questions:
- Is crypto itself green?
- Can you invest in crypto if you have ESG-related investment criteria and parameters?
- Can you use crypto to promote ESG-related initiatives around voting rights, gender equality, employee relations, and others?
- Decentralized finance (DeFi) – a form of finance that does not rely on certain financial intermediaries like brokerages, exchanges, and banks – should be on everyone’s radar moving forward. DeFi can promote better financial inclusion, but it also gives rise to volatility and market concerns.
- Investors should consider the future impact of central bank digital currencies. This may have big ramifications from a monetary policy perspective by allowing governments to get much more involved directly with individuals.
New developments will give rise to new legal questions – with regulatory intervention sure to follow. The landscape for cryptoassets continue to evolve and advance, with boundaries being challenged at every step.
You can also read about the twenty questions we addressed in the publication Crypto around the World. In this edition of the guide, we cover multiple jurisdictions across three major regions – Asia Pacific (Australia, Hong Kong, Singapore, Taiwan, and Thailand), EMEA (Belgium, France, Germany, Italy, The Netherlands, Spain, Switzerland, UK and Ukraine), and North America (USA). You can read the most recent version and visit our page to see more updated content and relevant information.
You can also listen to the first part:
Crypto around the World (Part 1) – Overview, Regulatory Issues, and Retail Investment in Crypto.
