How Will Regulators React to the Rise of Cryptocurrency with Barney Reynolds #6
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Hosted By Jawad Akhtar
Guests
Barney Reynolds, Partner at Shearman & Sterling LLP
Episode show notes
Digital assets and cryptocurrency are a growing phenomenon, for which current regulatory standards aren’t yet fully tailored. So what risks should we be aware of with these assets?
We pick through NFTs, stablecoins and digital assets with Barney Reynolds, Partner at Shearman & Sterling LLP, breaking down the volatility we’re currently seeing, and how soon we might expect the Treasury and FCA to share their approach.
This episode of The VERMEG podcast covers:
- How the UK’s regulators are likely to become thought leaders in handling and regulating digital assets
- Whether the approach to cryptocurrency will be more akin to a currency or a financial investment
- The transparency is necessary to avoid crypto becoming the instigator of another 2008-style financial crisis
- A potential timescale on which we’ll see regulators respond with an implementation timeline
Links & references
VERMEG: https://www.linkedin.com/company/vermeg/
Jawad Akhtar: https://www.linkedin.com/in/jawad-akhtar-313562b/
Barney Reynolds: https://www.linkedin.com/in/barnabas-reynolds-financiallawyerlondon/
Shearman & Sterling LLP: https://www.linkedin.com/company/shearman-&-sterling-llp/
Episode highlights
“In the major markets, you look to apply the existing concepts and definitions of what’s regulated, but there’s not that much that’s specific to crypto. So that’s the sort of world we’re all operating in at the moment.” – 2:10 – Barney Reynolds
“I think the regulators to watch here are the UK regulators, because they have, for a long time, been thought leaders in parsing through the various risks that one needs to manage and integrating assets into the financial markets, doing so in a predictable and safe way.” – 6:00 – Barney Reynolds
“If you’re dealing with someone that’s holding cryptocurrency, you’re probably going to want to know how much they’ve got, and of what. Then maybe you yourself would then verify how much it’s worth at the moment or what the spot price is on an exchange.” – 11:45 – Barney Reynolds
“The question is, are there exceptions where you don’t report? Is a cryptocurrency more akin to a currency or a financial investment? There’s a judgement call to be made in relation to a number of these instruments.” – 16:50 – Barney Reynolds
“There’s no one single authority that’s going to make this all happen quickly. But I believe the Treasury and the FCA are looking at it hard. I would guess a year or two to see a meaty text. It may be quicker than that, but even then there’ll be an implementation timeline around it.” – 22:00 – Barney Reynolds