ISDA Responds To UK Consultation On Cryptoassets
ISDA has submitted a response to HM Treasury’s consultation and call for evidence on the UK’s regulatory approach to cryptoassets and stablecoins.
ISDA’s response highlights opportunities for the deployment of new technology such as distributed ledger technology (DLT) and smart contracts in the derivatives market.
The response also notes the importance of achieving greater legal and regulatory certainty, flagging a number of areas where legal or regulatory barriers to the deployment of new technology in financial markets currently exist.
Finally, the paper notes the importance of common, digital standards and the distribution of those standards across the industry, and describes a number of important ISDA initiatives in this area, such as the ISDA Clause Library and Common Domain Model.
The letter can be read here.
Industry experts will help shape discussions regarding standardisation in crypto-markets.
CME's launch of crypto futures has attracted new institutional participants.
The majority of crypto-assets remain unregulated in the EU.
The regime is for existing cryptoasset businesses which applied for registration before 16 December 2020.
The Commission has proposed legislation on crypto-assets for the first time.