United Kingdom: HM Treasury consults on regulatory approach to cryptoassets and stablecoins
On 7 January 2021 HM Treasury (HMT) published a combined consultation paper and call for evidence on the regulatory approach to cryptoassets and stablecoins.
In outline, the consultation proposes:
A policy approach that would involve specific requirements being implemented by independent regulators (e.g. via rules or codes of practice) within a wider framework of objectives and considerations set out by HMT.
Expansion of the regulatory perimeter, with the introduction of a regulatory framework for “stable tokens” (i.e. tokens which maintain a stable value by referencing asset(s)), drawing on existing e-money and payments legislation. The FCA would authorise and supervise relevant entities carrying out certain activities in the UK. A stable token arrangement could also be subject to Payment Systems Regulator (PSR) and Bank of England regulation under certain circumstances.
Keeping your organisation secure now more critical than ever
The words “cybersecurity” and “data leak” are increasingly becoming part of our lexicon, especially after Absa recently confirmed that data belonging to 200 000 clients was stolen by a rogue employee, who now faces criminal charges.
That leak followed an Experian breach, which left 24 million South Africans exposed when their personal information, including cellphone and ID numbers, apparently ended up on the Internet. Those who follow media reports will also have read that matriculants will have to rewrite two papers after examination papers were leaked.
The question then becomes, how can companies ensure that staff do not walk off with competitively, or otherwise, sensitive information? According to Brett Skinner, security sales manager at Micro Focus, “it’s more dangerous to walk on the Internet highway” than it is to take a jog.