UK regulators set interim expectations for Crypto activities – Deloitte Insight – March 2022

On 24 March, UK regulators set out their expectations of how existing regulatory frameworks apply to regulated firms’ crypto activities.

• The PRA issued a letter to the CEOs of banks and designated investment firms highlighting areas of existing frameworks that firms should consider when building their crypto activities. It also launched a survey of firms’ current and planned crypto exposures in 2022.
• The FCA published a notice reminding firms it oversees of their existing obligations when interacting with crypto.

The expectations come as traditional regulated financial services (FS) firms explore opportunities to expand into crypto markets alongside traditional offerings. At the same time, policymakers are developing the UK’s long-term crypto regulatory framework to ensure that market integrity, financial stability and consumer protection are maintained. As this article explores, the PRA’s and FCA’s expectations will help traditional FS firms build their crypto strategy with a degree of regulatory clarity in the interim.

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