Recent Developments in Crypto Regulation in the UK, the EU, and the USA
Over the last month or so, we have seen the UK, the EU, and the US take steps towards developing cryptoasset regulations and a framework that (are intended) to promote innovation and growth while protecting investors. Each jurisdiction realizes this is somewhat of a digital arms race (currently a slow jog) and that there will be a competitive advantage for the country (or group of countries) that can put together a robust framework to regulate cryptoassets first. It is difficult to keep track of the proposals and the recent changes as well as the general crypto market events. In my effort to keep track, I have tried to summarize the most recent and important events here.
EU
After much consultation and amendment, the Council presidency and the European Parliament reached a provisional agreement on Regulation on Markets in Cryptoassets (MiCA) on 30th June 2022, moving closer to creating a legal framework for the European cryptoasset market.
The main takeaways include:
Management: CASPs will have to be established with substantive management presence in the EU, with a resident director and office in the country where they request authorisation. Authorisation should be refused if AML criteria is not met.
