FIS Horizons 2023 Brochure - Riding the wave - Flipbook - Page 5
Digital assets and
payments: further
developments
and innovations
Jonathan Chertkow
Partner, London
John Salmon
Partner, London
Michael Thomas
Partner, London
Roger Tym
Partner, London
Mark Orton
Senior Associate, London
Lavan Thasarathakumar
Digital Assets and Blockchain
Policy Consultant, London
2023 looks set to see the emergence of a regulatory framework for the wider
regulation of cryptoassets in the UK. HM Treasury’s publication of the longawaited consultation paper and call for evidence setting out proposals to
mark the next stage of the UK’s phased approach for introducing a UK
regulatory regime for cryptoassets proposes a holistic approach to
regulation in the sector.
In contrast to the EU’s approach with MiCA
which sets out a new regime to cover all
cryptoassets not currently in the scope of
regulation, the Treasury’s proposals look to use
the existing Financial Services and Markets Act
(FSMA) regime to regulate the sector by
expanding the list of “specified investments”
to cover “cryptoassets”.
The adaptation of the existing financial services
regime could allay concerns about introducing
an entirely novel regime. There are also
challenges in trying to adapt existing rules to
the cryptoassets sector. The clarity and
proportionality benefits of having a bespoke
regime might prove to be a missed
opportunity. Overall, the devil will be in the
detail as to how a new regulatory regime will be
applied but there is no doubt that the new
regime represents a positive step for the UK.
Read the full article regarding the cryptoassets
consultation here. Further developments
have occurred in relation to financial
promotions relating to qualifying cryptoassets
and we are likely to see further details of a
bespoke temporary exemption emerging
during 2023. Read the full article here.
As our everyday lives become more digital, we
have seen further innovation in the digital
payments sector. Developments include the
Bank of England and HM Treasury consulting
on a model for a UK retail central bank digital
currency (CBDC) or ‘digital pound’ that would
sit alongside, rather than replace, cash. In
contrast to unbacked cryptoassets, the digital
pound would be issued and backed by a central
authority, the Bank of England, providing
intrinsic value and better stability. The earliest
stage at which the digital pound could be
launched would be the second half of the
decade. Read the full Engage article here.
Article correct as of 08 February 2023.
