Global Digital Assets Digest: October 2023

Welcome to this month's Global Digital Assets Digest. On the UK front, the new UK financial promotions regime for cryptoassets is now in effect. The FCA has been issuing a number of communications to firms operating in the cryptoassets sector, including a multi firm review of compliance with rules on the customer journey in respect of firms offering restricted mass market investments.

At the EU level, there have been some important publications from the ESAs in relation to MiCA. International regulators have also put out important papers in relation to progress made on the Roadmap for Enhancing Cross-Border Payments.

In Hong Kong, we have a number of developments following the high profile case of a crypto exchange. There's also news in Dubai on proposals to regulate digital assets. 

Updates and Guidance: International Bodies

1. FSB: Reports on Cross Border Payments Roadmap targets

On 9 October 2023, the FSB published the first annual report on KPIs for meeting the targets for cross-border payments and a consolidated report on progress under the Roadmap. The reports intend to provide a quantitative and qualitative overview of challenges facing cross-border payments, the progress being made on the G20’s priority actions, and current public and private sector projects relating to cross-border payments.

The consolidated progress report summarises initiatives being undertaken by the FSB and other standard setting bodies on priority actions set out in the 2023 update to the Cross-Border Payments Roadmap. These include: developing the capabilities of central payment and settlement infrastructures; and supporting the move to common data standards for payments messages.
The reports were presented to the G20 Finance Ministers and Central Bank Governors in October 2023.

2. European Commission: Call for tender on possible methodology and sustainability standards for mitigating the environmental impact of cryptoassets

On 5 October 2023, the European Commission call for tender in relation to developing a methodology and sustainability standards in relation to the environmental impact of cryptoassets. The methodology will measure the climate and environmental impact of the consensus mechanisms used by crypto-assets and decide if future legislative action in this area/environmental sustainability standards for cryptoassets are needed. This has been done in response to concerns about the expansion of crypto-mining within the EU (and elsewhere).

3. ESMA: Reports on aspects of the EU DLT Pilot Regime

On 5 October 2023, ESMA issued two reports in relation to the EU DLT Pilot Regime prepared for ESMA by an external bodies. The first report summarises the findings of a study on the use of DLT/blockchain for transactions where an exemption to Article 26 of MiFIR is granted to a DLT market infrastructure. Views were sought to gain a better understanding of applicable data storage approaches and transaction data produced by DLT transactions.

The second report focuses on how financial instrument transactions are registered in various DLTs. It concludes that the number of transaction fields natively defined by the DLTs are very limited, leading to significant gaps between the DLTs’ transaction fields and the fields currently to be reported under the RTS 22 transaction reporting schema (see our briefing here for a discussion on the issues).

For a background on the EU DLT Pilot Regime, please see Ashurst guide and Ashurst briefing.

4. ESMA: Consultation Paper: Technical Standards specifying certain requirements of Markets in Crypto Assets Regulation.

On 5 October 2023, ESMA issued a consultation paper on its second set of RTS and ITS under MiCA The second consultation package covers six RTS and two ITS on:

• content methodologies and presentation of sustainability indicators on adverse impacts on the climate and the environment;
• measures that CASPs must take to ensure continuity and regularity in the performance of services;
• trade transparency;
• content and format of order book records;
• record keeping by CASPs; and
• data necessary to classify white papers.

The ITS relate to:

• standard forms and templates for white papers of CASPs; and
• technical means for appropriate public disclosure of inside information.

ESMA is required under MiCA to define a format enabling machine readability of white papers and is proposing Inline XBRL tags (iXBRL). It has developed a Proof of Concept demonstrating how an easily editable template (e.g. an Excel containing a macro, without need for any additional specialised software) would allow for the preparation of a compliant iXBRL white paper at very limited cost.

ESMA will publish a final report and submit the draft technical standards to the European Commisson for endorsement by 30 June 2024. ESMA is also expected to publish a third consultation package in Q1 2024.

For more information on MiCA, please see our briefings here and here.

5. BIS: Speech by François Villeroy de Galhau on wholesale CBDC

On 4 October 2023, BIS published a speech by François Villeroy de Galhau, Governor of the Banque de France titled Wholesale CBDC: as decisive as Retail CBDC, and actively experimenting.

Key points

• Tokenised central bank money would ensure convertibility between tokenised assets in the same way that central banks currently ensure the convertibility between commercial bank monies.
• The Eurosystem has been working on new technologies for the settlement in central bank money, including issuing the first type of tokenised CBDC.
• BIS has been an advocate of tokenised deposits and urges European commercial banks to explore “tokenised deposits” so as to catch up with their American and Asian counterparts.
• In terms of cross border payments, wholesale CBDCs could address a number of friction costs and other issues. This is more likely if ex-ante interoperability of wholesale CBDCs is pursued, using common platforms based on common standards.
• BIS and the IMF are looking at integrated platforms that would bring together tokenised central bank money, tokenised deposits and tokenised financial assets. These platforms could make domestic CBDCs natively interoperable, easing cross-border payments.
• Stakeholders in the EU should consider building an integrated European platform that would provide an efficient payment and settlement system and would be subject to specific European standards and governance rules. Combined with a wholesale and/or retail CBDC, the infrastructure could make the euro more attractive in activities such as trade finance.

6. EBA: 2024 Work Programme

On 3 October 2023, the EBA published its annual work programme for 2024. This outlines the key strategic areas for EBA, as well as related activities and tasks. The EBA confirms that it will be addressing a number of mandates, building on the priorities defined in its programming document for the period 2024-2026. The EBA confirms that it will be developing oversight and supervisory capacity for MiCA.

Key points

• EBA will work on promoting supervisory convergence in relation to crypto and MiCA authorisation and supervision via a dedicated Coordination Group. Supervisory capacity-building will be enhanced by by extending training for staff, and by organising workshops with NCAs on supervisory techniques for cryptoasset issuer supervision.
• The EBA will continue its monitoring of crypto-asset market developments, including deFi and cryptoasset staking and lending, so as to promote consistency in regulatory and supervisory approaches across the EU.

7. HM Treasury: Joint statement on the UK-U.S. Financial Regulatory Working Group meeting

On 29 September 2023, the U.S.-UK Financial Regulatory Working Group issued its September 2023 joint statement in respect of its eighth official meeting, which took place on 6 September 2023. Key items on the agenda included digital finance, with the following items discussed: U.S. and UK approaches to central bank digital currencies, digital payments, distributed ledger technology and artificial intelligence; the importance of responsible digital financial innovation and the role of the Financial Innovation Partnership; and the finalisation of the FSB’s high-level recommendations on stablecoins and cryptoasset activities.

8. EBA: Technical advice on classification of asset referenced tokens and e-money tokens under MiCA

On 29 September 2023, the EBA published technical advice in relation to MiCA. This follows a December 2022 call for advice from the European Commission in relation to two delegated acts under MiCA.

Criteria for classifying asset referenced tokens and electronic money tokens (EMT) as significant.

The EBA recommends a set of core and ancillary indicators for determining the circumstances under which the activities of the issuer of asset-referenced tokens are categorised as significant on an international scale outside the EU; and the circumstances under which asset-referenced tokens and their issuers should considered to be interconnected with the financial system. The core indicators seek to capture the most relevant elements of significance, while the ancillary indicators seek to capture aspects that are complementary to those covered by the core indicators.

Fees to be charged by EBA to issuers of significant ARTs and significant EMTs in relation to all costs incurred in connection with its supervisory tasks

EBA’s advice covers: the type of supervisory fees; the matters for which fees are due; the amount of the fees and the manner in which they are to be paid; and the methodology to calculate the maximum amount per entity that can be charged by the EBA.

9. BIS Innovation Hub: Final Report: Project Mariana - Cross-border exchange of wholesale CBDCs using automated market-makers

On 28 September 2023, BIS Innovation Hub published a final report in respect of Project Mariana, an initiative between the BIS Innovation Hub, the Bank of France, the Monetary Authority of Singapore and the Swiss National Bank. It tests transnational FX interbank trading and settlement involving wholesale CBDCs (hypothetical Swiss Franc, euro and Singapore dollar) and financial market infrastructures using elements of DeFi. The project extends previous experimentation on cross-border settlement using wholesale CBDC arrangements and DLT.

10. WFE: Report: Promoting Sound Marketplaces – DeFi/CeFi, Crypto Platforms & Exchanges

On 28 September 2023, the World Federation of Exchanges published a report titled “Promoting Sound Marketplaces – DeFi/CeFi, Crypto Platforms & Exchanges". The report notes the increased adoption of digital assets and increased focus on crypto-asset trading platforms (CTPs). It sets out principles for CTPs so to encourage sound market places in crypto trading. These include: segregating market infrastructure functions within a CTP where appropriate e.g. limiting CTPs trading their "own boo"’ or in potential conflict with their customers; having in place systems and controls for broader risks, such as abusive trading, to protect integrity of price formation; holding sufficient financial resources to meet expected operational stress events; and having appropriate governance and management requirements.

The report concludes by arguing that CTPs should disclose their regulatory status and not describe themselves as "exchanges" until they are appropriately regulated and observe the standards outlined in the report.

11. FSB: Report: Stocktake of international data standards relevant to cross-border payments

On 25 September 2023, the FSB issued a report providing a stocktake of international data standards relevant to cross-border payments. The stocktake examines national and regional data frameworks that concern the regulation and supervision of cross-border payments.

The transfer of data across borders is considered essential to the functioning of cross-border payments, and Building Block 6 of the 2020 Cross Border Payments Roadmap seeks to address potential constraints between data frameworks and cross-border payments. Frictions from data frameworks cited as challenges in the report include: fragmentation across data framework requirements and their implementation; uncertainty among payment providers on how to balance their various obligations under different data frameworks; and restrictions on the flow of data across borders.

The report notes that work is already in progress in relation to addressing some of the issues identified. This includes future amendments to FATF Recommendation 16: Wire Transfers to take account of recent and future developments in the payments systems framework, including the adoption of ISO 20022 messaging standards.

The FSB plans by early 2024 to issue recommendations for public consultation in relation to promoting alignment and interoperability across data frameworks applicable to cross-border payments.

12. ESAs: Joint Committee report on risks and vulnerabilities in the EU financial system

On 18 September 2023, the ESAs published their Autumn 2023 Joint Committee Report on risks and vulnerabilities in the EU financial system. The section on cryptoassets notes a rebound in valuations of cryptoasets in early 2023 following the decline in 2022 . It cites continuing challenges to the sector, notably the failure of several US banks exposed to cryptoassets and new technologies, as well an increase in enforcement actions against crypto exchanges.

Updates and Guidance: UK

13. FCA: Statement confirms 146 alerts issued in the first 24 hours of new crypto marketing regime

On 9 October 2023, the FCA issued a statement in relation to compliance with its new cryptoassets financial promotions regime. The regime came into effect on 8 October 2023 (see our briefings here and here for further details) and the FCA confirms that it has issued 146 alerts on the first day of the new regime. The FCA advises businesses (including social media platforms, app stores, search engines, domain name registrars and payments firms) to consider the alerts issued by the FCA. Customers are advised to check the Warning List so as to understand where firms' promotions may be breaking the law.

14. FCA: Updated webpage: Cryptoasset AML/CTF regime: feedback on good and poor quality applications

On 6 October 2023, the FCA updated its webpage on AML and CTF regime containing feedback on good and poor quality applications by cryptoasset businesses for registration under the MLRs 2017.

Amendments include examples of good and poor practice observed by the FCA in applications for registration including:

• many applicants do not effectively identify and assess the inherent AML and CTF risks to which their business is subject;
• a firm's business-wide risk assessment should include an exhaustive assessment of risk factors highlighted in regulation 18(2)(b) of the MLRs;
• control failings are often mistakenly identified as inherent risks; and
• effective transaction monitoring and blockchain analysis needs be provided for both fiat and cryptoasset transactions (where appropriate).

15. ASA: Announcement on the regulation of cryptoadverts

On 6 October 2023, ASA confirmed that with effect from 8 October 2023, the FCA would be taking over the regulation of adverts for certain cryptoassets in non-broadcast media. The ASA confirms that this change relates to "qualifying cryptoassets" i.e. cryptoassets that are transferable and fungible. The ASA will continue to regulate adverts for cryptoassets that are out of scope for the FCA rules, including NFTs; and all finance-related advertising, including adverts for cryptoassets, in Ofcom-regulated TV and radio services.

16. FCA: Multi-firm review on financial promotions for high-risk investments

On 27 September 2023, the FCA published a new webpage on the findings of its review of how firms offering restricted mass market investments (RMMIs) have complied with new rules on the customer journey (see our briefing here for a background).

This follows the FCA's August 2022 Policy Statement containing new requirements for firms promoting high-risk investments (see our briefing here). The FCA's review involved requesting requested information from a sample firms in relation to their onboarding journey. The FCA also reviewed their approach to COBS 4.12A requirements and guidance on promoting RMMIs.

The review's findings contains examples of good and poor practice in relation to: incentives to invest; the cooling off period; risk warnings; client categorisation and appropriateness.

17. FCA: Final warning for cryptoasset firms marketing to UK consumers and those supporting them to get ready for the financial promotion regime

On 21 September 2023, the FCA issued its final warning letter ahead of the implementation deadline for the UK financial promotions regime for cryptoassets. The letter also discusses the concerns in the following areas:

• engagement with unregistered firms promoting to UK consumers;
• action against firms illegally promoting to UK consumers;
• expectations of those supporting unregistered firms marketing to UK consumers; and
• complying with the financial promotion regime.

CASPs that cannot legally communicate financial promotions to UK consumers are expected to have robust systems and procedures to prevent UK consumers accessing and responding to promotions they provide (e.g. geo-blocking UK consumers and statements providing that services are not available to people based in the UK).

Updates and Guidance: Europe

18. Deutsche Bundesbank: Status update on the digital euro published

On 28 September 2023, Deutsche Bundesbank published on its website an update on the project digital euro.

The High-Level Task Force on Central Bank Digital Currency (HLTF-CBDC), consisting of representatives of the ECB and the national central banks in the Eurosystem, is currently working intensively on the possible design of a digital euro. HLTF-CBDC will present a proposal to the Governing Council of the ECB in autumn 2023. This is the conclusion of the investigation phase that the digital euro has been undergoing since October 2021. On the basis of this proposal, the Governing Council will then decide whether to continue the project. The next phase would then focus on further preparatory work, in particular the development of technical specifications and standards. Once these preparations are completed and the legal framework is in place, the development of a digital euro will begin. A potential introduction of the digital euro would then be expected in four to five years at the earliest, and would likely occur in stages.

19. BaFin and Deutsche Bundesbank: BaFinTech 2023

On 19 and 20 September 2023 BaFin and the German Central Bank (Deutsche Bundesbank) organised a conference for experts of the BaFin and of the Deutsche Bundesbank as well as external experts to exchange views on the digitalisation of the financial industry and financial technology innovations (BaFinTech 2023).

This year's topics included MiCA, DeFi, advances in artificial intelligence, the digital euro and the Digital Operational Resilience Act. The experts delivered different presentations on these topics, e.g. the representatives from BaFin and the Bundesbank presented on the topic of "From crypto custodians to crypto asset service providers", in which they presented the current developments on the crypto market and its regulation, the regulatory classification of crypto custody from a German perspective and how MiCA affects the current development, particularly through the introduction of the crypto asset service provider.

20. BaFin: Article on crypto markets

On 18 September 2023, Rupert Schäfer, Executive Director Strategy, Policy and Control at BaFin published an article on the topic "Crypto markets: What do we learn from the turmoil?".

According to Schäfer, it is necessary to develop clear and appropriate rules for crypto markets in order for market participants to benefit from DLT in the long term as well, in order to create trust in digital financial offers. The article argues that in light of international regulatory efforts, particularly with regard to the MiCA, technical standards must now be developed and enacted to implement the Regulation. The article calls for international regulatory principles to be implemented globally and consistently to avoid regulatory gaps or gaps in supervision. For German supervision, the article points out that only those who have a plausible business model, sufficient start-up capital and reliable management personnel will receive a licence from BaFin.

Updates and Guidance: APAC

21. BIS: Research Paper on Bank of Korea's CBDC project

On 4 October 2023, BIS issued a report on the Bank of Korea's CDBC project. The report sets out the Bank of Korea’s own approach to CBDC in light of BIS’s input, containing a blueprint for a CBDC network that includes the issuance and circulation of both CBDC and private digital currencies. The CBDC project is designed to act as a testing ground for financial institutions to implement payment and financial services on the Bank of Korea’s infrastructure and gauge their effectiveness.

22. SFC: Speech by Christina Choi on enabling innovation in the asset management industry

On 26 September 2023, the SFC published a speech by Ms Christina Choi, Executive Director (Investment Products). The speech summarises the SFC's approach to regulating tokenised investment products.

Points to note

• The SFC regards tokenisation as a “wrapper” of a product in the form of a smart contract using blockchain technology and adopts a “see-through” approach, which means the underlying product itself must meet all the applicable product authorisation requirements of the SFC.
• The SFC is currently working on more detailed guidance on the tokenisation of SFC-authorised investment products and will issue it in the near term. In principle, primary dealing of tokenised SFC-authorised products would be more appropriate to be allowed first at this stage in view of the nascent state of development of the VATP regime in Hong Kong, while secondary trading of tokenised SFC-authorised products on VATPs would warrant more caution and careful consideration. Product providers and VATPs would need to address regulatory challenges appropriately and come up with proper measures before VATPs could offer secondary trading of SFC-authorised products.

23. SFC: Measures to reinforce information dissemination and investor education on VATPs in light of recent public concerns

On 25 September 2023, the SFC announced measures to reinforce information dissemination and investor education for VATP in light of the JPEX incident (see item 25 for further information). The measures include:

• The publication of:
  • a list of licensed VATPs;
  • a list of closing-down VATPs setting out the names of VATPs required by law to close down within a specified period;
  • a list of deemed licensed VATPs, consisting of the names of VATPs which are deemed to be licensed as of 1 June 2024;
  • a list of VATP applicants; and
  • a list of suspicious VATPs to alert investors at an earlier stage.

The lists have been published on 29 September 2023.

• The SFC and the Investor and Financial Education Council will soon launch a public campaign to raise awareness in guarding against fraud by various means such as mass media, social media and education talks, to facilitate the public’s understanding of the risks associated with virtual assets and potential fraud.
• The SFC will explore with the Police to set up a dedicated channel to share information on suspicious activities of and breaches by VATPs and to investigate the JPEX incident to bring the wrong-doers to justice. On 4 October 2023, the SFC established a working group with the Hong Kong Police Force dedicated to enhance collaboration in monitoring and investigating illegal activities related to VATPs.
• The SFC will work with the HKSAR Government to regularly review the regulatory regime in Hong Kong and consider timely measures in light of new market developments under to the “same business, same risks, same rules” principle. These measures may include regulation of virtual asset-related businesses other than the VATPs.

24. HKMA: mBridge project expecting new members and the launch of a minimum viable product

On 25 September 2023, the Bank for International Settlements published a speech by Mr Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA). The speech mentions the latest developments of the mBridge project, a multi-Central Bank Digital Currency (CBDC) project including the People's Bank of China, to settle real-value, cross-border transactions on behalf of corporates.

Points to note:

• The HKMA is expecting to welcome more fellow central banks to join the mBridge open platform.
• A minimum viable product with the aim of paving the way for the gradual commercialisation of mBridge will be launched soon.

25. SFC: Statements on the JPEX incident

On 13 September 2023, the Securities and Futures Commission (SFC) issued a warning statement to the public concerning JPEX. In the statement, the SFC pointed out that JPEX falsely claimed on its website and local advertorials to have obtained licences from certain overseas regulators to operate as a VATP and a number of the products offered by JPEX appear to be arrangements involving virtual asset "deposits", "savings" or "earnings" which are not permitted under the SFC's regulatory regime for VATPs. In addition, the SFC confirmed that it had received complaints from retail investors who were unable to withdraw virtual assets from their accounts maintained with JPEX, or had found their account balances reduced and altered.

On 20 September 2023, in light of JPEX disclosing the confidential correspondence between JPEX and the SFC's Enforcement Division, the SFC issued another statement to affirm that JPEX had never approached the SFC in respect of any potential licence application and the disclosed correspondence was part of the SFC's investigations into JPEX since March 2022. The SFC noted that JPEX has breached the secrecy/confidentiality provisions of the Securities and Futures Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance by publicising the confidential communication with the SFC.

26. HKMA: Report on Project Sela

On 12 September 2023, the HKMA, together with the Bank of Israel and the Bank for International Settlements Innovation Hub Hong Kong Centre published a joint report, titled “Project Sela – An accessible and secure retail CBDC ecosystem”. As the first collaborative project between the two central banks on the fintech front, Project Sela demonstrates the technical feasibility of a retail CBDC architecture that can promote competition and innovation in digital payments by allowing non-bank payment intermediaries to connect directly to the CBDC ledger of the central bank.

Updates and Guidance: Australia

27. ASIC: Warning to the crypto industry on importance of complying with design and distribution obligations

ASIC has warned the crypto industry about the importance of complying with their design and distribution obligations to ensure that financial products are distributed to consumers appropriately. This comes after ASIC commenced civil penalty proceedings in the Federal Court against Bit Trade Pty Ltd, provider of the Kraken crypto exchange to Australian customers. ASIC alleges that Bit Trade did not comply with the design and distribution obligations for the margin trading products it offers Australian consumers on the Kraken exchange by failing to make a target market determination for the product before offering it to Australian customers, as required by law.

Updates and Guidance: North America

28. SEC: Testimony of Chairman Gary Gensler before the United States House of Representatives Committee on Financial Services

On 28 September 2023, SEC published the testimony of SEC Chairman, Gary Gensler, before the United States House of Representatives Committee on Financial Services. The speech is wide ranging covering a number of issues. In relation to crypto, Mr Gensler refers to his previous remarks in which he argued that most cryptoassets would be subject to securities laws. Mr Gensler refers to recent SEC enforcement actions in relation to cryptoassets, as well as recent SEC initiatives, such as the Enhanced Safeguarding Rule for Registered Investment Advisers and a reopening release outlining the applicability of existing rules to platforms that trade cryptoasset securities.

29. House Financial Services Committee: Letter to SEC to approve spot Bitcoin exchange traded product

On 26 September 2023, a letter from group of members from the House Financial Services Committee addressed to SEC Chair, Gary Gensler, was published. This calls for the SEC to approve the listing of Bitcoin exchange traded products. The letter argues that approval would improve investor safety and transparency.

30. Remarks by Assistant Secretary for Financial Institutions Graham Steele at the Electronic Transaction Association Fintech Policy Forum

On 15 September 2023, US Treasury published remarks by Assistant Secretary for Financial Institutions, Graham Steele, at the Electronic Transaction Association Fintech Policy Forum.

The speech touched on developments in payments sector, summarising challenges faced by sector and policymakers. These include the emergence of new systems and technology, intermediaries and forms of money. Mr Steele refers to developments in the EU, such as Open Banking and updates to payment services legislation (see our briefing here), attributing the slower pace of development in the US to factors such a as policy uncertainties and "competition tensions" among stakeholders. He notes concerns around inaccurate representations about the availability of deposit insurance made by some cryptoasset firms and confirms that the Treasury Department, along with the other members of the President’s Working Group on Financial Markets, has recommended legislation be enaceted in relation to a robust prudential regulatory framework for stablecoin issuers.

31. CBDC Anti-Surveillance State Act reintroduced

On 12 September 2023, Majority Whip, Tom Emmerr, introduced the CBDC Anti-Surveillance State Act. The CBDC Anti-Surveillance State Act prohibits the Federal Reserve from: issuing a CBDC directly to individuals; indirectly issuing a CBDC to individuals through an intermediary; and using any CBDC to implement monetary policy.

On 20 September 2023, it was announced that the House Financial Services Committee had passed the Bill.

The Bill was first introduced in January 2022.

32. FinCEN: Alert on "Pig Butchering" scams

The U.S Department of the Treasury's Financial Crimes Enforcement (FinCEN) has issued an alert to financial institutions in relation to a cryptocurrency investment scam known as "Pig Butchering". The practice is so-called as it resembles the practice of fattening a hog before slaughter. The "butchering" phase often involves convincing victims (termed in this situation as "pigs") to invest in virtual currency, with the aim of defrauding them of their investment. This often follows a process of "fattening up" (i.e. the victim being misled via elaborate storylines/other guises into believing that they are in trusted relationships). The alert sets out behavioural red flags to assist financial institutions in detecting, preventing, and reporting potential suspicious activity related to pig butchering.

Updates and Guidance: Middle East

33. DIFC: Consultation on new digital assets law

On 29 September 2023, the Dubai International Financial Centre announced consultations on Digital Assets Law, a new Law of Security and related amendment to existing legislation to support the DIFC's proposed digital assets regime. The consultation on Digital Assets Law sets out plans to introduce a comprehensive digital assets regulatory framework. The consultation on the Law of Security contains proposals designed to align the DIFC's securities regime with international best practice and to provide clarity on taking security over digital assets.

The deadline for comments is 5 November 2023.

Press/Articles

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Contributors: Ankita Rao, Trainee; Tobias Bauerfeind, Senior Associate; Cornelius Hille, Associate; Gréta Müller, Junior Associate; Daphne Chung, Associate; Oscar Tsoi, Trainee