Diane B. Bailey

🇩🇪Germany Prepares to Launch Its First Regulated Stablecoin 🚀German asset management company DWS, owned by Deutsche Bank, has launched a new venture aimed at creating the first state-regulated stablecoin, pegged to the euro, by next year. This is a significant step for the European financial sector, considering that DWS manages assets worth €941 billion, reports Finextra. 💸The cryptocurrency will be regulated by the Federal Financial Supervisory Authority of Germany (BaFin). DWS will be the first company to obtain a German electronic money license for a stablecoin. Stefan Hoops, CEO of DWS, noted that the stablecoin will appeal to a wide range of clients, including digital asset investors and industrial players. #Stablecoin #Cryptocurrency #DigitalAssets #FinTech #Blockchain #FinancialRegulation #EuroStablecoin #DeutscheBank #BaFin #DWS #AssetManagement #DigitalFinance #CryptoRegulation #FinanceInnovation #EuropeanFinance

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#Switzerland: FINMA launches consultation on new circular on rules of conduct under Swiss Financial Services Regulations: The Swiss Financial Market Supervisory Authority #FINMA is creating transparency regarding its supervisory practice on rules of conduct under the Swiss Financial Services Act (#FinSA). It has drafted a new, compact circular and will conduct a public consultation on this up to 15 July 2024. The Swiss Financial Services Act (FinSA) has been in force since the beginning of 2020. FINMA has identified a need for action due to the inconsistent implementation of FinSA requirements among #SupervisedInstitutions. Questions of practice and interpretation repeatedly arise with regard to #RulesOfConduct under the FinSA. Key Points of the #Circular: 1. The circular is addressed to #FinancialServiceProviders (#FSPs) supervised by FINMA or a #SupervisoryOrganisation (#SO) - regardless if being active in traditional finance (#TradFi), #fintech or #crypto / #DLT / #blockchain - and creates #transparency regarding FINMA’s practice relating to selected aspects of rules of conduct under FinSA/#FinSO. 2. In accordance with FinSA/FinSO and taking into account the shortcomings identified in supervision, the circular mainly specifies the way in which transparency is to be created for clients so that they can make informed #investment decisions, in particular: • transparency about the type of #FinancialService, in particular the difference between #transaction-based and #portfolio-based #InvestmentAdvice; • transparency about the #risks associated with #FinancialInstruments or financial services, especially in the case of products and financial services that are particularly difficult to understand and/or risky (e.g. #RiskConcentrations that are unusual in the market, products with a high degree of leverage or borrowings of financial instruments from the client portfolio); • transparency regarding #ConflictsOfInterest, especially when placing in-house products; • transparency regarding #compensation from third parties and #retrocessions. 3. In principle, no costs are expected for the supervised parties as a result of the circular. The circular does not restrict the business models of supervised parties, but increases the quality of the information provided to clients. Concluding, the circular specifies the way in which clients are to be provided with information so that they can make informed investment decisions. For example, clients should be informed about the type of financial service, the risks associated with the financial instruments or financial services and the compensation from third parties. FINMA will now conduct a public #consultation on the draft circular up to 15 July 2024. MLL Legal Global Blockchain Business Council (GBBC) Crypto Valley Association

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🇺🇸 The enforcement approach continues in full swing. The CFTC has once again taken action in the DeFi space by issuing an order against Uniswap. Is it even surprising at this point? Have we reached a stage where enforcement has become more predictable than any genuine regulatory efforts to create a clear and effective framework? 📌 “𝘜𝘴𝘪𝘯𝘨 𝘰𝘶𝘳 𝘦𝘯𝘧𝘰𝘳𝘤𝘦𝘮𝘦𝘯𝘵 𝘢𝘶𝘵𝘩𝘰𝘳𝘪𝘵𝘪𝘦𝘴 𝘢𝘨𝘢𝘪𝘯𝘴𝘵 𝘋𝘦𝘍𝘪 𝘱𝘳𝘰𝘵𝘰𝘤𝘰𝘭𝘴 𝘪𝘯𝘴𝘵𝘦𝘢𝘥 𝘰𝘧 𝘱𝘳𝘰𝘷𝘪𝘥𝘪𝘯𝘨 𝘤𝘭𝘢𝘳𝘪𝘵𝘺 𝘵𝘩𝘳𝘰𝘶𝘨𝘩 𝘯𝘰𝘵𝘪𝘤𝘦-𝘢𝘯𝘥-𝘤𝘰𝘮𝘮𝘦𝘯𝘵 𝘳𝘶𝘭𝘦𝘮𝘢𝘬𝘪𝘯𝘨 𝘳𝘪𝘴𝘬𝘴 𝘥𝘳𝘪𝘷𝘪𝘯𝘨 𝘳𝘦𝘴𝘱𝘰𝘯𝘴𝘪𝘣𝘭𝘦 𝘋𝘦𝘍𝘪 𝘥𝘦𝘷𝘦𝘭𝘰𝘱𝘦𝘳𝘴 𝘰𝘷𝘦𝘳𝘴𝘦𝘢𝘴 𝘵𝘰 𝘤𝘳𝘦𝘢𝘵𝘦 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴𝘦𝘴, 𝘫𝘰𝘣𝘴, 𝘢𝘯𝘥 𝘦𝘤𝘰𝘯𝘰𝘮𝘪𝘤 𝘢𝘤𝘵𝘪𝘷𝘪𝘵𝘺 𝘢𝘸𝘢𝘺 𝘧𝘳𝘰𝘮 𝘵𝘩𝘦 𝘜𝘯𝘪𝘵𝘦𝘥 𝘚𝘵𝘢𝘵𝘦𝘴; 𝘭𝘦𝘢𝘷𝘪𝘯𝘨 𝘣𝘦𝘩𝘪𝘯𝘥 𝘵𝘩𝘦 𝘣𝘢𝘥 𝘢𝘤𝘵𝘰𝘳𝘴 𝘢𝘯𝘥 𝘤𝘳𝘪𝘮𝘪𝘯𝘢𝘭𝘴 𝘸𝘩𝘰 𝘢𝘳𝘦 𝘰𝘯𝘭𝘺 𝘪𝘯𝘵𝘦𝘳𝘦𝘴𝘵𝘦𝘥 𝘪𝘯 𝘵𝘢𝘬𝘪𝘯𝘨 𝘢𝘥𝘷𝘢𝘯𝘵𝘢𝘨𝘦 𝘰𝘧 𝘈𝘮𝘦𝘳𝘪𝘤𝘢𝘯 𝘤𝘪𝘵𝘪𝘻𝘦𝘯𝘴” This is spot on, and we've seen a similar pattern with securities laws applying to certain digital assets, where the SEC has provided little clarity. Defining legal boundaries through enforcement actions leaves companies guessing about the classification of their products and assets, along with the regulatory requirements they must follow. This uncertainty is not a sustainable approach. 📌“𝘐 𝘴𝘩𝘢𝘳𝘦 𝘵𝘩𝘦 𝘊𝘩𝘢𝘪𝘳𝘮𝘢𝘯’𝘴 𝘤𝘰𝘯𝘤𝘦𝘳𝘯 𝘵𝘩𝘢𝘵 “𝘵𝘩𝘦 𝘤𝘶𝘳𝘳𝘦𝘯𝘵 𝘵𝘳𝘢𝘫𝘦𝘤𝘵𝘰𝘳𝘺 𝘪𝘴 𝘶𝘯𝘴𝘶𝘴𝘵𝘢𝘪𝘯𝘢𝘣𝘭𝘦,” 𝘢𝘯𝘥 𝘵𝘩𝘪𝘴 𝘤𝘰𝘯𝘤𝘦𝘳𝘯 𝘪𝘴 𝘩𝘦𝘪𝘨𝘩𝘵𝘦𝘯𝘦𝘥 𝘸𝘩𝘦𝘯 𝘸𝘦 𝘶𝘴𝘦 𝘰𝘶𝘳 𝘦𝘯𝘧𝘰𝘳𝘤𝘦𝘮𝘦𝘯𝘵 𝘳𝘦𝘴𝘰𝘶𝘳𝘤𝘦𝘴 𝘵𝘰 𝘪𝘯𝘷𝘦𝘴𝘵𝘪𝘨𝘢𝘵𝘦 𝘋𝘦𝘍𝘪 𝘢𝘤𝘵𝘪𝘷𝘪𝘵𝘺 𝘸𝘩𝘦𝘳𝘦 𝘵𝘩𝘦𝘳𝘦 𝘪𝘴 𝘯𝘰 𝘥𝘰𝘤𝘶𝘮𝘦𝘯𝘵𝘦𝘥 𝘩𝘢𝘳𝘮 𝘰𝘳 𝘯𝘰 𝘴𝘪𝘨𝘯𝘪𝘧𝘪𝘤𝘢𝘯𝘵 𝘱𝘳𝘰𝘧𝘪𝘵 𝘵𝘰 𝘵𝘩𝘦 𝘋𝘦𝘍𝘪 𝘱𝘳𝘰𝘵𝘰𝘤𝘰𝘭 𝘴𝘵𝘦𝘮𝘮𝘪𝘯𝘨 𝘧𝘳𝘰𝘮 𝘵𝘩𝘦 𝘢𝘤𝘵𝘪𝘷𝘪𝘵𝘺 𝘢𝘵 𝘪𝘴𝘴𝘶𝘦, 𝘢𝘴 𝘸𝘦𝘭𝘭 𝘢𝘴 𝘸𝘩𝘦𝘳𝘦 𝘸𝘦 𝘴𝘦𝘦 𝘱𝘳𝘰𝘢𝘤𝘵𝘪𝘷𝘦 𝘴𝘵𝘦𝘱𝘴 𝘵𝘰𝘸𝘢𝘳𝘥 𝘤𝘰𝘮𝘱𝘭𝘪𝘢𝘯𝘤𝘦.” Pig Butchering scams have reportedly resulted in $75 billion in losses. Additionally, new FTC data this week highlighted a sharp increase in consumer losses from Bitcoin ATM scams. Yesterday, the FBI issued an alert that North Korea is conducting advanced social engineering attacks on DeFi and cryptocurrency companies to steal digital assets.  It’s clear that resources and taxpayer money could be better spent addressing these significant threats, rather than enforcing for the sake of enforcement. What's the next chapter in the regulation-by-enforcement saga? 🔗 https://lnkd.in/dTvQJijD

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