How Gresham international could have the best response to FCA on the new stablecoins laws.
As soon as HM treasury launched a consultation on the UK regulation of crypto assets and stablecoins, Gresham international began to prepare a response to the new laws.
The 46-pages consultation document aims to mitigate risks to consumer and financial stability to keep the UK as a world leader in financial technology. The government adapts a light approach to maintain stability and at the same time to allow a space for innovation.
Large sector of assets has been left outside the regulatory perimeter such as bitcoin and security tokens. As FCA has conducted through a survey they did that 89% consumers are aware of the lack of regulatory protection to these tokens. But rather the consultation has a prime concern on stablecoins.
Why Gresham international?
Being the largest independent crypto only law firm in the world and also having head office in the UK put Gresham international in the right position to propose a response to this consultation.
With the main focus of the consultation document on stablecoins, the comprehensive response of Gresham international is considering every possible public use and benefit of stablecoins that the consultation document itself has recognized as a faster and cheaper way of cross border payment or even for people to store money. Gresham International’s response is also inclusive of the professional aspects. The document regarded stable coins of significant importance for capital markets as they have the potential to fundamentally change the way markets operate.
The government and HM treasury is to set objectives and a broad outline of the regulation under which new rules should apply, that in turn will allow a level playing field but at the same time help reduce opportunities of regulatory arbitrage. On the other hand, independent regulators such as financial conduct authority will be responsible for seting the detailed rules and guidelines. And having consulted with both HM treasury and financial conduct authority provides Gresham International with the experience that ultimately ensures a solid response.
The response is carried out by Gresham international associate manager Cal Evans and his team who are top level legal and financial experts, and having previous successful governmental proposal experiences enable Gresham international to conduct the desired fair outcome. As in 2019 Cal Evans wrote the official proposal for incorporation of security tokens into the Labuan finance license, which was accepted unanimously by the local government in Malaysia.
Moreover the experience Gresham international has with firms issuing stablecoins and firms providing related services, which are the targeted firms to go under the new regulatory
perimeter, provides a deep understanding of the status of the market and ensures a protective and fair response.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.