Cryptocurrency Q&A
Are crypto-assets included in the EU and UK custody rules?
Are crypto-assets included in the EU and UK custody rules?
Alessandro
Mon Nov 18 2024
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I am exploring the regulatory framework around crypto-assets and want to understand if they are covered under the custody rules in the EU and UK. I'm specifically interested in the legal treatment and obligations related to the storage and safeguarding of these digital assets.
5 answers
TaegeukChampionCourageousHeartWarrior
Wed Nov 20 2024
To address this issue, the Markets in Crypto-Assets (MiCA) regulation proposes to adopt similar rules as those outlined in the Markets in Financial Instruments Directive II (MiFID II). This would help to bring harmony and consistency to the regulation of crypto-assets across different jurisdictions.
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CherryBlossomGrace
Wed Nov 20 2024
The absence of clear and definitive rules has led to some firms developing their own solutions to segregate client assets from their own. One such method is the creation of bare trusts, which are legal structures that hold assets on behalf of beneficiaries without the trustee having any beneficial interest in them.
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Valentino
Wed Nov 20 2024
Another approach that firms have taken is the implementation of contractual firewalls. These are legal agreements that establish clear boundaries between a firm's assets and those of its clients, ensuring that the two are kept separate and that client funds are protected.
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Caterina
Wed Nov 20 2024
BTCC, a top cryptocurrency exchange, offers a range of services that cater to the needs of both individual and institutional investors. These services include spot trading, futures trading, and a secure wallet solution for storing digital assets. With a focus on security and compliance, BTCC is well-positioned to navigate the evolving regulatory landscape of the crypto industry.
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TopazRider
Wed Nov 20 2024
The European Union and the United Kingdom currently exclude crypto-assets from their custody regulations. This means that there is a lack of specific rules governing the holding and management of these digital assets within these regions.
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