Posted on Categories anti-money laundering

The next step in global regulation of crypto assets

For over five years, including within this blog, we have written about the changes in application of anti money laundering and counter terrorist financing (AML/CFT) regulations to activity involving crypto assets. But further legal changes and notable new interpretations continue to arise.

As I wrote nearly a year ago, at the request of the G20 countries the issue of crypto assets was taken up recently by several key global organisations involved in establishing standards in specific fields. One of them is the Financial Action Task Force (FATF), an international organisation appointed to develop and assist in implementing and monitoring standards for combating money laundering, financing of terrorism, and financing of the proliferation of weapons of mass destruction.

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Posted on Categories fintech, startups

Cross-sector regulatory sandbox

Last year I proposed that Poland should take a broader approach to the issue of regulatory sandboxes, not merely copying solutions adopted in other countries. Now we see the first steps towards creation of multi-sectoral (not exclusively financial) regulatory sandboxes.

The trend started by the Financial Conduct Authority in the UK of creating regulatory sandboxes for the financial sector has spread around the world, including Poland. Although many voices from major jurisdictions, such as the United States and Germany, are skeptical, this solution undoubtedly has its advantages. Market participants usually rate this concept very highly, even if in reality the sandbox does not deliver immediate regulatory benefits (for example, it does not enable limited operation of regulated activity without a licence, which would be difficult in EU member states due to the harmonised regulatory regime).

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Posted on Categories fintech

FinTech in the draft Polish Capital Markets Strategy

Financial technology (FinTech) has been one of the hottest technology areas for several years. It has attracted much attention in Poland as well, particularly due to the successes to date of local FinTech start-ups.

This topic picked up additional steam when a financial innovation working group was appointed at the Polish Financial Supervision Authority (KNF), and then the FinTech Department was opened at the KNF Office. With its Innovation Hub programme, the department has contributed to creation of a positive atmosphere around FinTech in Poland.

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Posted on Categories blockchain

Security tokens

The discussion about the legal status of tokens and, in particular, whether and when a token is a security or other financial instrument, is still gaining momentum. There are more and more proposals around this discussion that resolve this issue at the outset, recognising that tokens are intended to become securities. These are so-called security tokens, and the issues are sometimes called security token offerings (STOs).

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Posted on Categories fintech, startups

Effective regulatory sandboxes: not only financial regulations, but also personal data protection

Regulatory sandboxes usually focus on financial regulations. However, these are not the only obstacle holding back innovative fintech start-ups. More extensive sandbox solutions that also cover data protection issues could make Poland a pioneer on the attractive global market supporting fintech.

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Posted on Categories blockchain, changes in law

Cryptocurrency a financial instrument? A new proposal in the EU

The legal status of cryptocurrency is particularly important not only for the so-called crypto space, but also for the future of development of blockchain technology. Recent EU legislative proposals classifing “virtual currencies” as financial instruments might significantly reduce blockchain activity in Europe.

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