Digital Asset Regulation in the UK, US and Germany: new tech, old rules?
The rise in the use of digital assets has presented regulators around the world with a number of unique challenges. Regulators and law makers in different jurisdictions are considering their options to more effectively regulate these novel assets in ways that protect consumers and the market, but also foster innovation to support the benefits this technology could bring.
Our digital asset regulatory experts in the UK, the US and Germany have each provided their views regarding current developments if cryptoasset regulation in their respective jurisdictions.
The UK’s framework for regulated digital assets is currently based on rules that existed prior to the rise of digital assets. That may, however, be slowly changing, as the appropriateness of more bespoke standards is explored.
Daniel Csefalvay and Anthony Williams, wrote about this in our Emerging Themes in Financial Regulation 2021 publication.
Over the past year, pressure continued to mount for the US government to enact regulation governing the use of digital assets in capital raising transactions. The lack of a digital asset-specific U.S. regulatory framework has meant that regulation continues to occur principally through enforcement activity. It seems unlikely this situation will change any time soon, but several developments provide hope for a solution that could allow the U.S. to remain competitive in the digital asset fundraising space.
Ashley Ebersole wrote about this in our Emerging Themes in Financial Regulation 2021 publication.
On 14 December 2020, the federal German government published a bill introducing an electronic securities regime. The bill provides not only for typical securities functions such as bona fide acquisition, but also an innovative bridge between Distributed Ledger Technology (DLT) and the traditional securities world. This is a significant legal milestone for DLT.
Bernd Geier wrote about this in our Emerging Themes in Financial Regulation 2021 publication.
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This document provides a general summary and is for information/educational purposes only. It is not intended to be comprehensive, nor does it constitute legal advice. Specific legal advice should always be sought before taking or refraining from taking any action.