The Financial Markets Law Committee (FMLC) has issued a letter to Treasury following the Treasury’s response to its 2020 Consultation on cryptoasset promotions.
The letter highlights that the FMLC has identified “several potential areas of legal uncertainty in relation to the regulation of cryptoassets and related activities in the UK” and requests an opportunity to discuss these.
Examples of legal uncertainty include:
- Confusion over authorisation and competence and which entities are permitted to approve financial promotions; and
- Whether the financial promotion regime will apply to e-money as well as to stablecoins as there is uncertainty around what regulation applies.
The FMLC recommends that authorities consider a coordinated approach to creating a bespoke regulatory regime for cryptoassets.