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1 – 8 of 8Sam Maxson, Stuart Davis and Rob Moulton
To analyse the final report of the UK Cryptoassets Taskforce published in October 2018 and discuss the UK’s policy and regulatory approach to crypto-assets and distributed ledger…
Abstract
Purpose
To analyse the final report of the UK Cryptoassets Taskforce published in October 2018 and discuss the UK’s policy and regulatory approach to crypto-assets and distributed ledger technology in financial services.
Design/methodology/approach
This article considers some of the key aspects of the final report of the UK Cryptoassets Taskforce and provides a summary of the next steps the UK authorities have committed to taking in relation to regulation of crypto-assets in the UK.
Findings
The approach to regulation of crypto-assets in the UK is evolving and the relevant UK authorities are continuing to improve their understanding of crypto-assets in order to assess the appropriate type and level of regulation that should apply to them. Whilst risks relating to consumer detriment and anti-money laundering have been identified as needing to be addressed as a matter of priority, the UK authorities appear to be taking a measured approach to regulation of crypto-assets. They also remain supportive of the adoption of distributed ledger technology in financial services, whilst noting some potential challenges to scalability.
Originality/value
This article contains valuable information about current policy direction and regulatory thinking in the UK in relation to crypto-assets, and analysis from leading FinTech lawyers.
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Bradley Rice and Bisola Williams
To review the findings of the Financial Conduct Authority's consumer research on cryptoassets.
Abstract
Purpose
To review the findings of the Financial Conduct Authority's consumer research on cryptoassets.
Design/methodology/approach
Summarises the FCA's research and draws on other recent cryptoasset papers/announcements.
Findings
The research finds consumers do not understand crytpoassets well, and not many of them buy them; those that do see them as a fast track to wealth.
Practical implications
This research will further inform the approach the FCA eventually takes in clarifying the regulatory perimeter for cryptoassets.
Originality/value
Summary by experts in the field.
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To critically examine two significant developments for the regulation and supervision of virtual assets and virtual assets services providers: the amendment of the Financial…
Abstract
Purpose
To critically examine two significant developments for the regulation and supervision of virtual assets and virtual assets services providers: the amendment of the Financial Action Task Force (FATF) Recommendation No 15 in October 2018 and the adoption of an Interpretative Note in June 2019. We argue that new FATF standards constitute an appropriate response to money laundering and terrorist financing risks associated with virtual assets, but that they must be followed by firm, consistent and effective implementation at the national level.
Design/methodology/approach
This paper draws on reports, legislation, legal scholarship and other open source data in order to examine the new FATF standards on virtual assets.
Findings
The amendment of the FATF Recommendation No 15 in October 2018 and the adoption of an Interpretative Note in June 2019 have been necessary and opportune to forge a global approach to mitigate money laundering risks associated with crypto-assets. The new FATF standards on crypto-asset activities need to be implemented firmly, effectively and consistency to reduce the risk of jurisdiction-shopping by money launderers and terrorism financiers.
Originality/value
This is one of the first studies examining two important and recent FATF initiatives, the amendment of the FATF Recommendation No 15 in October 2018 and the adoption of an Interpretative Note in June 2019.
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Katherine Kirkpatrick, Aaron Stephens, Jacob Gerber, Margaret Nettesheim and Sebastian Bellm
To evaluate the global anti-money laundering regulation of digital assets and cryptocurrencies.
Abstract
Purpose
To evaluate the global anti-money laundering regulation of digital assets and cryptocurrencies.
Design/methodology/approach
This article provides an analysis of macro trends in digital asset money laundering regulation and explores the regulatory frameworks in some of the leading international crypto markets.
Findings
As the popularity and public adoption of digital assets have grown, global regulators have turned their attention to the risks of anti-money laundering. Monitoring the evolving international regulatory landscape is essential for organizations looking to successfully take advantage of digital asset-related investment opportunities.
Practical implications
Market participants should understand all applicable laws and procedures before they decide to enter the digital asset market. These considerations can become even more complex as businesses interact with multiple international regulators.
Originality/value
This article is designed to help investors understand the global anti-money laundering regulatory landscape regarding digital assets, particularly for those institutions interested in diversifying with crypto-related investment opportunities.
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The purpose of this study is to analyze the anti-money-laundering (AML) policies in place around the world for digital assets and cryptocurrencies.
Abstract
Purpose
The purpose of this study is to analyze the anti-money-laundering (AML) policies in place around the world for digital assets and cryptocurrencies.
Design/methodology/approach
This study examines the regulatory frameworks of some of the most prominent international crypto markets and provides an analysis of macro trends in digital asset money laundering legislation.
Findings
As widespread use of cryptocurrencies has increased, authorities around the world have begun to focus on the associated money-laundering concerns. Organizations that want to take advantage of investment opportunities related to digital assets must keep an eye on the ever-changing worldwide regulatory landscape.
Practical implications
Before entering the digital asset market, potential participants should familiarize themselves with the relevant regulations and processes. In cases where enterprises interface with several international regulators, the complexity of these factors can increase.
Originality/value
This essay is written for financial institutions who are considering crypto-related investment opportunities as a means of diversification to better comprehend the worldwide AML regulatory framework pertaining to digital assets.
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This paper aims to examine the framework for the regulation of crypto assets in Germany, the UK and Switzerland focusing on anti-money laundering (AML) laws. It comprehensively…
Abstract
Purpose
This paper aims to examine the framework for the regulation of crypto assets in Germany, the UK and Switzerland focusing on anti-money laundering (AML) laws. It comprehensively addresses the risks of crypto assets and the benefits along with the changes made to the existing laws to regulate cryptocurrency.
Design/methodology/approach
Qualitative data was analyzed to collect information for the case study and to challenge/examine the existing data and statistics.
Findings
The findings suggested that the AML laws are additionally modified to include the cryptocurrencies violations of the legislation, as it is the decentralized financial systems generating opportunities for crimes and terror financing. The moderate or mild laws were found in Switzerland following Germany and the UK has the most traditional and stringent laws of money laundering.
Originality/value
The paper has focused on the comparison of the three states in their AML laws comprehensively along with their attitude toward the crypto businesses.
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The UK authority published its first regulatory guidance on crypto-assets in July 2019. This paper aims to critically evaluate the effectiveness of the crypto-asset regulation in…
Abstract
Purpose
The UK authority published its first regulatory guidance on crypto-assets in July 2019. This paper aims to critically evaluate the effectiveness of the crypto-asset regulation in the UK and the consistency of the existing regulatory scheme.
Design/methodology/approach
This paper adopts comparative methods to carry out the analysis. The paper begins by elaborating the development of crypto-assets alongside the financial innovation in the world and pinpointing the core Acts and Regulations applied to crypto-assets in the UK. The paper also discusses a court case in the EU to highlight an argument among legal professions concerning crypto-assets classification.
Findings
Through carefully analysing relevant primary and secondary legislation of the UK and EU, this paper identifies some unclarified issues in the regulatory framework and discovers three flaws in the regulatory system. The paper concludes that the effectiveness of the current regulatory scheme is poor and room for improvement exists.
Originality/value
The paper provides the first review and a thorough analysis of the Laws and Acts applied to the crypto-asset regulation in the UK. It also calls on a simpler and clearer regulatory scheme from the perspectives of market participants and consumers. The discovered issues in the crypto-asset regulation in the UK may urge authorities to improve the existing regulatory frameworks and legal provisions.
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Araz Zirar, Abdul Jabbar, Eric Njoya and Hannan Amoozad Mahdiraji
This study aims to explore the key challenges and drawbacks of smart contracts (SCs) and how they impact digital resilience within small and medium enterprises (SMEs). Whilst this…
Abstract
Purpose
This study aims to explore the key challenges and drawbacks of smart contracts (SCs) and how they impact digital resilience within small and medium enterprises (SMEs). Whilst this type of technology is seen as a step forward in terms of traceability, transparency and immutability to increase digital resilience, we argue that it should be approached with trepidation.
Design/methodology/approach
In developing this paper, the authors conduct a systematic literature search using the Scopus database. Through this, we identified 931 relevant articles, of which 30 were used as the focus of this article. Thematic analysis was used as the analytical approach to develop themes and meaning from the data.
Findings
In this paper, there is an emphasis on the importance of understanding the potential risks associated with SC implementation, as well as identifying appropriate strategies for mitigating any negative impact. In our findings, we puts forward three key themes, namely legality, security and human error, which we argue are key smart contract challenges that impact SME digital resilience.
Originality/value
In this paper, we propose the notion of “centralised control in decentralised solutions”. This comes from the research highlighting SC weaknesses in digital resilience for SMEs. We argue that there is a need for standards, regulations and legislation to address these issues, advocating, ironically, a centralised approach to decentralised technology.
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