Grow My Bag’s Post

Shivam Thakral, CEO of BuyUcoin™ writes an exclusive article for The Economic Times on the impact of regulations on digital asset industry. Regulations can provide a clear environment for crypto trading and investments. Crypto exchanges and traders would know the legal provisions guiding their activities. They would know what is legal and permitted. They would also know what is unlawful and prohibited. Regulations make businesses progress with confidence. Read the full article here: https://lnkd.in/gyf7Dyhn

Crypto regulation is here and now.

The FCA has publised its roadmap for regulating crypto, together with the outcome of consumer research it has commissioned into the sector. In 2023, the former Chair of the FCA, Charles Randell, warned the Treasury Select Committee of the potential "halo" effect of regulating crypto. The FCA's research shows that since the FCA started regulating the promotion of crypto (with its attendant mandatory warnings, cooling off periods and suitability testing) the proportion of crypto owners who wrongly believe that they would have financial protection when they purchase cryptoassets has doubled - from 10% in 2022 to 20% in 2024. The incorrect message that many consumers take from regulatory intervention is that "the FCA has your back". Would a far simpler and more effective message be "It's the Wild West out there - you're on your own"?

I really hope this doesn’t get lost in all commentary after the report on the FCA. This a great piece of work and would recommend reading it alongside the Jersey Financial Services Commission work. Can also give business leaders my top tips on how to get Risk and Compliance teams to be your biggest allies in promoting this business area internally and successfully launching initiatives into the market. 1) Be able to demonstrate you have actual knowledge on digital assets, having provided training and preferably can bring in experienced team members 2) Engage with your regulator. They are just as keen to develop this area and have so many ways to support 3) Create a proper Risk Appetite Statement and work out what you want your exposure to be. Remember not to run before you can walk 4) Develop a good risk assessment tool so you know how being involved with particular clients and deals will impact your risk exposure 5) Accept changes will be needed to policy and procedure developed. These must be in place before you start work, you can’t experiment first and catch up later 6) More training and testing that people do have the knowledge needed Have all those and journey will be much simpler, more profitable and safer. Risk and Compliance can design the support you need around this and be your reliable and trusted advisor. It may seem fairly obvious but some of the most challenging areas I have seen are when the basics get missed in the desire to get a new offering to market quickly. Investing time and effort now will give a very large return.

In addition to the Cryptoassets Consumer Research, we have also published our regulatory timeline, which you can check out at the link below

Good package of comms from FCA today on crypto regulation. Roadmap in particular is part of wanting to be transparent on plans and how industry can engage with us.

The Financial Conduct Authority has today published a timeline detailing key dates and milestones on its roadmap for #regulating #crypto, with a clear expectation that a full regime will be in place in 2026. While some may perceive this to be a long timeframe, the FCA has made clear that it will be seeking extensive engagement with stakeholders across the board to get the rules right. This inevitably takes time and should hopefully lead to a #proportionate regulatory regime balancing #investor protection with #innovation and #competition in the interests of the both firms and consumers. In any event, regulatory certainty over crypto is very much welcomed! You can find the timeline through the link below.

Is this the end of crypto enforcement as we know it? 🚨 Top U.S. regulators who led the charge are stepping down. At the CFTC, Ian McGinley, who built its reputation as a powerhouse for crypto enforcement, is leaving. Under his leadership, the agency targeted insider trading and crypto fraud, making waves in digital markets. Meanwhile, SEC’s Gary Gensler, known for 100+ enforcement actions against crypto giants like Coinbase and Binance, is also exiting. President-elect Trump wants to rewrite the crypto playbook—Bitcoin reserve, no CBDC, and pro-mining policies. 🇺🇸 Are we entering a golden age for crypto innovation? 📈

SARS has intensified its efforts to collect data from Crypto Asset Exchanges, marking a significant shift in its compliance strategy. This move could spell trouble for crypto traders who haven’t declared their profits. With a focus on transparency and compliance, SARS aims to leverage technology and data to uncover undeclared crypto transactions. Crypto investors must now ensure they are fully compliant to avoid penalties or legal consequences. As featured in IOL, Crypto News and Daily Investor. For more information read the full article: https://bit.ly/3XCSRu7 #CryptoCompliance #SARS #TaxLaw #CryptoTax #FinancialRegulation #TaxConsulting

🚨 Crypto Alert! 🚨 The SEC just launched a new Crypto Task Force, led by "Crypto Mom" Hester Pierce! 🤲 Get ready for clear rules, smarter enforcement, and a brighter future for crypto regulation. 🌎 Have your say—submit your thoughts at crypto@sec.com and help shape the future of crypto! 💡💪 #Plg #Lawfirm #CryptoNews #SECTaskForce #CryptoRegulation