Global Trustee and Fiduciary Services Bite-Sized Issue 11 2023

CRYPTO Future UK Financial Services Regulatory Regime for Cryptoassets – Consultation Outcome On 30 October 2023 the UK Government confirmed its final proposals for cryptoasset regulation in the UK, including its intention to bring a number of cryptoasset activities into the regulatory perimeter for financial services for the first time. The document provides the UK Government’s response to the consultation and call for evidence on the future financial services regulatory regime for cryptoassets, which was published on 1 February 2023 and closed on 30 April 2023. It summarises the feedback received by HM Treasury in response to the consultation, and details how this has influenced further development of the government’s approach. Link to Response to the Consultation and Call for Evidence here FCAWarns About Common Issues with Crypto Marketing On 25 October 2023 the Financial Conduct Authority (FCA) announced that a change in legislation has brought cryptoasset promotions under its remit, and from 8 October 2023 it has been supervising firms against the new regime that is designed to give consumers the right information and risk warnings. The FCA said that since then it has identified three common issues with cryptoasset financial promotions. These include: • Promotions making claims about the ‘safety’, ‘security’ or ease of using cryptoasset services without highlighting the risk involved; • Risk warnings not being visible enough due to small fonts, hard-to-read colouring or non-prominent positioning; and • Firms are failing to provide customers with adequate information on the risks associated to specific products being promoted. The FCA states that it expects authorised firms approving the financial promotions of cryptoasset firms to take their regulatory obligations seriously. Where this is not happening, the FCA says it will take action. The FCA also says it is working with businesses including social media platforms, app stores, search engines and domain name registrars to remove or block illegal promotions. And it is also working with payments firms to limit UK consumer exposure to firms issuing illegal promotions. The FCA says that it is continuing to identify and act against firms that are illegally promoting cryptoassets to UK consumers. Since the regime went live, it has issued 221 alerts. This list will be continually updated as the FCA identifies firms which may be illegally communicating cryptoasset promotions and are failing to engage with the FCA constructively. Link to FCA Press Release here Securities Services Bite-Sized Global Trustee and Fiduciary Services Issue 11 | 2023 QUICK LINKS CRYPTO FUND LIQUIDITY MICA REMUNERATION SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA EUROPE NORTH AMERICA UNITED KINGDOM