Regulatory Blog

On 6 June 2024, the European Banking Authority enhanced the regulatory framework for crypto assets by publishing a package with three new regulatory products under the Markets in Crypto-Assets Regulation. These products focus on governance, conflicts of interest and remuneration aiming to create a transparent, secure, and well-regulated market in crypto assets.

The Cayman Islands Monetary Authority (CIMA) released its regulatory policy establishing criteria for approving the registration or licensing of virtual asset service providers (VASPs) as per the Virtual Asset (Service Providers) Act (VASP Act). This policy has been published in the official gazette on 15 May 2024.

On 7 May 2024, the European Banking Authority released three sets of final draft regulatory technical standards and one set of final draft implementing technical standards relating to asset-referenced tokens under the Markets in Crypto-assets Regulation.

On 10 April 2024, the European Securities and Markets Authority published an extensive article “Crypto assets: Market structures and EU relevance” offering a comprehensive analysis of trends within secondary markets for crypto assets.

At present, Cyprus-based crypto exchanges that wish to provide services both in relation to spot crypto products and financial instruments such as crypto derivatives are subject to dual-licensing under the local AML legislation and the traditional investment services regime implementing EU Directive 2014/65/EU. The Cyprus Securities and Exchange Commission administers both regimes.

Our BVI Regulatory team recently advised Portofino Technologies Global, a prominent cryptocurrency market maker, in successfully securing approval from the Financial Services Commission under the Virtual Assets Service Providers Act.

With the rules in EU Regulation 1114/2023 on markets in crypto-assets (MiCA) becoming applicable by the end of 2024, staying compliant is crucial for businesses operating within the European Union/the European Economic Area (EEA). To assist crypto-industry participants in understanding their regulatory obligations under MiCA, Harneys proudly presents its new MiCA Assessment Tool.

Partner Joshua Mangeot and Associate Myles Chingara contributed the BVI chapter in the upcoming Crypto Assets in Trusts and Foundations comprehensive guide, co-published by Globe Law and Business and STEP.

On 9 June 2023, EU Regulation 2023/1114 on Markets in Crypto Assets (MiCA) and EU Regulation 2023/1113 on information accompanying transfers of funds and certain crypto-assets (Travel Rule Regulation) were published in the Official Journal of the European Union.