Each market is dealing with COVID-19 cautiously, and the guidelines issued by different agencies follow a general theme around awareness, caution, and transparency.
Financial institutions face two categories of emergencies arising out of the coronavirus disease that could impair their functioning. The first is directly financial: a sudden drop in the value of financial assets, or loss of liquidity, whether domestically or elsewhere in the world that could lead to a national or even global financial crisis. The second is operational: the failure of the support structures that underpin the financial system.
In a letter to authorised credit brokers on 13 February, the FCA explain what they considered to be the key risks credit brokers pose to their consumers or markets.
The European Commission and the Council of the EU have set out the EU’s position on the use of global stablecoins. As expected, whilst they accept that financial innovations can benefit the financial sector, they consider that stablecoins pose many global risks, including, but not limited to, risks to consumers and cybersecurity.
The UK’s financial regulators have imposed a ban and fine of over £150,000 on the former CEO of Scottish mutual insurer, SBMIA, for misconduct involving his liability to tax.
The Legal Statement aims to offer the embryonic crypto-asset sector the best possible answers to important private law questions under English law.