Crypto & Digital Assets

What Changed

Prudential Sourcebooks: Introduces COREPRU (core requirements across sectors) and CRYPTOPRU (crypto-specific calibrations) for "CRYPTOPRU firms" handling regulated crypto activities, covering own funds adequacy, capital resources, and stress-adjusted internal capital assessments. Own Funds and Capital Rules: Firms must hold financial resources adequate in amount and quality, including adjustments for valuation uncertainty, stress realizable values, and interim profits in CET1 capital; supplement

What You Need To Do

• Respond to Consultation
• Assess Applicability
• Prepare Prudential Frameworks
• Engage on Related CPs
• Data and Reporting Readiness

Key Dates

References

• [1] fca.org.uk
• [2] fca.org.uk
• [3] traverssmith.com
• [4] taylorwessing.com
• [5] hoganlovells.com
• [6] lw.com
• [7] ukfinance.org.uk
• [8] actuaries.org.uk

What Changed

The enforcement actions establish precedent in three critical areas: *Market Manipulation (Spoofing): The CFTC secured consent orders against precious metals futures traders for spoofing—placing and canceling orders to create false market impressions. The orders impose three-year and six-month trading bans** and require cease-and-desist compliance with the Commodity Exchange Act's spoofing prohibition. *Misappropriation and Fictitious Trading: The CFTC obtained permanent injunctive relief requ

What You Need To Do

• *For Registered Futures Firms and Banks
• trade and post-trade compliance controls
• *For Commodity Pool Operators and Investment Advisors:
• by-jurisdiction licensing analyses before soliciting investors
• *For All Market Participants

Key Dates

References

• [1] cftc.gov
• [2] jdsupra.com
• [3] cftc.gov
• [4] foley.com
• [5] lowenstein.com
• [6] cftc.gov
• [7] cohenco.com
• [8] cftc.gov

What Changed

The CFTC has obtained federal court orders imposing civil monetary penalties and trading bans on individuals and firms for spoofing and misappropriating confidential information. The CFTC has also charged an unregistered commodity pool operator with fraud and registration violations.

What You Need To Do

• Verify registration with the CFTC at NFA BASIC before committing funds
• Review and update anti-spoofing and anti-fraud policies and procedures
• Ensure compliance with CFTC regulations regarding commodity pool operations and futures market participation

Key Dates

Related Regulations

What Changed

The publication announces amendments to SR 946.231.176.72, though specific details in the notice are limited; it signals ongoing refinements to sanctions measures originally enacted on March 4, 2022. Related documentation indicates persistent expansions, such as broader restrictions on Russian energy sector activities (e.g., prohibiting certain services, financing, and transactions), definitions encompassing financial instruments like derivatives, crypto-assets, and securitizations, and prohibit

What You Need To Do

• Block prohibited activities in energy sector, financial services (e
• Update internal policies, screening tools, and training to reflect changes; maintain records of compliance checks and authorizations (if applicable under Article 11)
• Monitor FINMA's sanctions page for full ordinance text and related guidance

Key Dates

References

• [1] practiceguides.chambers.com
• [2] lenzstaehelin.com
• [3] finews.com
• [4] efd.admin.ch
• [5] finma.ch
• [6] finma.ch
• [7] sdc-cde.ch
• [8] investmentpolicy.unctad.org

What Changed

This announcement reflects structural reforms rather than new substantive regulations: Replacement of Regional Directors with Deputy Directors, centralizing reporting from local offices (e.g., Boston, Fort Worth, Atlanta) and specialized units directly to headquarters-led Deputy Directors. Enhanced supervision of enforcement decisions, aiming for consistency and reduced regional variations in handling investigations. Complements parallel Wells process reforms under Chairman Paul Atkins, includin

What You Need To Do

• Review and update internal protocols for SEC investigations to align with centralized reporting structures, anticipating uniform standards across regions
• Train legal/compliance staff on refined Wells process (e
• Monitor upcoming SEC communications for Enforcement Director Judge Margaret Ryan's guidance on fraud-focused priorities
• Assess current or potential matters for earlier engagement with Deputy Directors on case theories and resolutions

Key Dates

References

• [1] jdsupra.com
• [2] dlapiper.com
• [3] mwe.com
• [4] corpgov.law.harvard.edu
• [5] foley.com
• [6] skadden.com
• [7] sec.gov
• [8] capx.cooley.com

What Changed

This is an enforcement action, not a new rule change, but it reinforces existing SFC circulars requiring VA products (including unauthorised funds and exchange-traded VA derivatives) to be offered exclusively to professional investors (PIs). Key requirements reiterated include: conducting VA-specific product due diligence; assessing client knowledge of VA investments; providing sufficient VA-specific information and warnings; and implementing platform controls to restrict retail access to comple

What You Need To Do

• Conduct immediate VA product due diligence using SFC-specific procedures, not just group-wide protocols, to identify unauthorised VA funds and derivatives
• Implement client knowledge assessments for VA investments before transactions, especially for retail clients
• Provide VA-specific warnings and information on platforms and ensure retail access is blocked for PI-only products
• Review and enhance online platform controls for suitability checks on complex products; audit historical VA trades for compliance gaps
• Update internal policies to align with SFC circulars on VA distribution, including staff training on breaches like those at SCMHK

Key Dates

References

• [1] apps.sfc.hk
• [2] structuredretailproducts.com
• [3] rootdata.com
• [4] binance.com
• [5] financemagnates.com
• [6] hoganlovells.com
• [7] jdsupra.com

What Changed

VA Dealer Regime: Introduces licensing for VA dealing activities (e.g., VA conversions, broker-dealer services at physical outlets or otherwise), excluding tokenized securities/derivatives (regulated under existing regimes) and HK-licensed stablecoin issuers; dealers must use only SFC-licensed VA custodians (not overseas) for client assets and may need to partner with SFC-licensed VA trading platforms (VATPs) for liquidity, mirroring Type 1 (dealing in securities) financial resources rules. VA C

What You Need To Do

• Pre-Application Engagement
• License Applications
• Custody Segregation
• Compliance Mapping
• Monitor Further Consults

References

• [1] tannerdewitt.com
• [2] slaughterandmay.com
• [3] gibsondunn.com
• [4] reedsmith.com
• [5] sidley.com
• [6] fstb.gov.hk
• [7] kwm.com
• [8] info.gov.hk

What Changed

This is an enforcement action, not a rulemaking, so there are no new regulatory changes or requirements. It reinforces longstanding CEA and CFTC rules on: Mandatory registration as a Commodity Pool Operator (CPO) and Associated Persons (APs) for pools trading commodity futures (CFTC Regulation 4.13 exemptions do not apply here due to fraud and public solicitation). Prohibitions on fraud, misrepresentations, guarantees of profit, non-disclosure of risks, commingling funds, and operating pools as

What You Need To Do

• Verify registration
• Implement controls
• Conduct due diligence
• Train staff
• For SEC-registered advisers

Key Dates

References

• [1] cftc.gov
• [2] cftc.gov
• [3] sidley.com
• [4] ropesgray.com
• [5] cftc.gov
• [6] haynesboone.com
• [7] cftc.gov
• [8] alston.com

What Changed

New fee structures: Introduction of a periodic fee block for PISCES operators based on regulated income (baseline £2,200 annual fee, variable above £500,000 threshold); extension of fee-block A.13 to include "targeted support" activities (Category 2 variation fee for existing firms, Category 4 for new entrants); registration fees for Deferred Payment Credit (DPC/buy-now-pay-later) activities aligned with Temporary Permissions Regime, added to FOS consumer credit fee-block but excluded from FSCS.

What You Need To Do

• Review current fee/levy exposure and model impacts of new blocks (e
• Assess invoice processes if paying £50,000+ in FCA/PRA fees; prepare for aligned due dates
• Submit consultation responses by deadlines, focusing on targeted support by 9 January 2026
• Budget for potential fee increases; monitor Spring 2026 fee-rates CP
• For applicants

Key Dates

References

• [1] fca.org.uk
• [2] jdsupra.com
• [3] regulationtomorrow.com
• [4] bankofengland.co.uk
• [5] finreg.aoshearman.com
• [6] policymogul.com
• [7] lexisnexis.co.uk
• [8] bankofengland.co.uk

What Changed

This is an enforcement action, not a rulemaking, so there are no new regulatory changes or requirements. It reaffirms existing CEA prohibitions on fraud, including Section 6(c)(1), 7 U.S.C. § 9(1), and 17 C.F.R. § 180.1(a)(1)-(3), covering material misrepresentations, omissions, and deceptive schemes in precious metals sales. Key takeaways include joint-and-several liability for entities and controlling individuals (Ikahn held liable for not acting in good faith), systematic overcharges as fraud

What You Need To Do

• Conduct immediate fraud risk assessments on precious metals sales scripts, disclosures, and pricing markups to ensure no material misrepresentations or undisclosed overcharges
• Enhance senior investor protections, including suitability reviews, cooling-off periods, and training on vulnerable customer targeting bans
• Review controlling person policies for good faith oversight, documenting supervisory failures to avoid personal liability
• Audit parallel SEC/CFTC exposures in commodity-linked activities, preparing for offset calculations in multi-agency actions
• Update compliance manuals with this case as precedent for CEA fraud in physical commodities; monitor whistleblower notices for internal reporting incentives

Key Dates

References

• [1] cftc.gov
• [2] cftc.gov
• [3] whistleblower.gov
• [4] oag.maryland.gov
• [5] nasaa.org
• [6] cftc.gov
• [7] securities.utah.gov
• [8] finance.idaho.gov

What Changed

The proposed regulatory regime introduces several material requirements for systemic stablecoin issuers: *Backing Asset Composition Systemic stablecoin issuers will be permitted to hold up to 60% of backing assets in short-term sterling-denominated UK government debt, with the remaining 40% held as deposits at the Bank of England. For stablecoins recognized as systemic at launch, a temporary "step-up" regime allows up to 95% of backing assets in UK government securities**, which would reduce to

What You Need To Do

• *For Systemic Stablecoin Issuers
• *Monitor and respond to consultation - Submit detailed comments on proposals before February 2026 deadline, particularly on:
• Alternative tools to achieve regulatory objectives
• Backing asset composition and holding limits
• Safeguarding regime design

Key Dates

References

• [1] skadden.com
• [2] mayerbrown.com
• [3] addleshawgoddard.com
• [4] bankofengland.co.uk
• [5] bankofengland.co.uk
• [6] reedsmith.com
• [7] whitecase.com
• [8] mofo.com

What Changed

This is an enforcement action, not new legislation, but it reinforces existing CJA 2010 requirements for VASPs: ongoing transaction monitoring, immediate STR filing to the Financial Intelligence Unit (FIU) and Revenue Commissioners upon suspicion of money laundering or terrorist financing, and adoption of internal policies/controls to prevent/detect financial crime. Key breaches included: misconfigured monitoring systems missing 30,442,437 transactions (31% of activity over 12 months); delayed r

What You Need To Do

• Conduct Gap Analysis
• Enhance Controls
• Accelerate STR Processes
• Board/Compliance Reporting
• Third-Party Review

Key Dates

References

• [1] wp.nyu.edu
• [2] centralbank.ie
• [3] flagright.com
• [4] centralbank.ie
• [5] centralbank.ie
• [6] pinsentmasons.com
• [7] vinciworks.com
• [8] coinbase.com

What Changed

Institutions must develop, implement, and maintain up-to-date policies, procedures, and controls for identifying, investigating, and applying restrictive measures without delay, including risk management for violations and circumvention. Management body responsibilities expanded: approve sanctions compliance strategy, oversee implementation, conduct at least annual assessments of exposure and controls, ensure remedial actions, and report deficiencies. Screening and monitoring requirements: Maint

What You Need To Do

• Conduct annual exposure assessments to sanctions risks and circumvention; update policies accordingly
• Appoint senior management/board-level responsibility for approving and overseeing sanctions strategy, including annual reviews and deficiency reporting
• Implement reliable screening systems for customers, transactions, and lists; define screenable datasets; test systems regularly for effectiveness (e
• Provide documented training to relevant staff on sanctions, institutional exposure, and internal processes
• Establish processes for immediate action on matches: suspend transfers, freeze assets, report to Ministry of Finance/CSSF/FIU without delay; maintain whitelists only under strict conditions

References

• [1] cssf.lu
• [2] cssf.lu
• [3] stradalex.lu
• [4] cliffordchance.com
• [5] cssf.lu
• [6] elvingerhoss.lu
• [7] mondaq.com
• [8] forbes.lu

What Changed

No binding regulatory changes are introduced; this is an exploratory summary confirming industry support for proposed principles on technical standards (security, governance, compliance), audit methods (third-party, self-certification), and regulatory avenues (preference for voluntary certification over mandatory). Respondents endorsed alignment with industry best practices, risk-based approaches, and proportionality, with calls for technologically neutral standards and continuous monitoring mod

What You Need To Do

• Monitor developments
• Review internal practices
• Enhance documentation
• Engage stakeholders

Key Dates

References

• [1] amf-france.org
• [2] gdf.io
• [3] adan.eu
• [4] amf-france.org
• [5] swapeducation.com
• [6] acpr.banque-france.fr
• [7] acpr.banque-france.fr
• [8] acpr.banque-france.fr

What Changed

The proposed amendments address the Pilot Regime's limited uptake by introducing the following regulatory modifications: *Scope Expansion Expand eligible financial instruments from current restrictions to all financial assets** Remove categorical limitations that previously restricted participation *Activity Thresholds Raise activity thresholds from €6 billion to €100 billion Introduce greater proportionality based on project scale**, allowing smaller players simplified requirements *Operatio

What You Need To Do

• *For Market Infrastructure Operators
• *Reassess Business Cases
• *Prepare Applications
• *Monitor Commission Decisions
• *Compliance Documentation

Key Dates

References

• [1] amf-france.org
• [2] esma.europa.eu
• [3] ashurst.com
• [4] amf-france.org
• [5] ledgerinsights.com
• [6] dlapiper.com
• [7] securities-services.societegenerale.com
• [8] agenzianova.com

What Changed

No binding regulatory changes yet; this is exploratory work anticipating future regulation. The report proposes: Standards for security, governance, and compliance across execution environments. Audit frameworks including public authority, third-party auditors, or self-certification. Regulatory avenues from voluntary certification to obligations, with proportionate approaches. Consultation responses (summarized post-March 2025) confirmed support for technical standards and audits but preferred v

What You Need To Do

• Participate/Review
• Assess Smart Contracts
• Monitor Developments
• Engage Stakeholders

Key Dates

References

• [1] amf-france.org
• [2] finreg-e.com
• [3] acpr.banque-france.fr
• [4] globallegalinsights.com
• [5] practiceguides.chambers.com
• [6] acpr.banque-france.fr
• [7] ashurst.com
• [8] amf-france.org

What Changed

No immediate regulatory changes or new requirements are introduced; this is a non-binding summary of consultation feedback from July 2024, intended to inform future discussions rather than enact rules. It highlights stakeholder views on DeFi's challenges, such as decentralization's impact on traditional oversight, with the AMF planning continued ecosystem engagement to outline proportionate responses. Related updates include clarifications on DASP transitions to MiCA CASP licensing (e.g., abolit

What You Need To Do

• Monitor and engage
• MiCA compliance
• Assess decentralization
• Update policies

Key Dates

References

• [1] amf-france.org
• [2] globallegalinsights.com
• [3] amf-france.org
• [4] amf-france.org
• [5] trmlabs.com
• [6] amf-france.org
• [7] francefintech.org
• [8] globalbankingandfinance.com

What Changed

No immediate binding regulatory changes are introduced, as this is a consultation report tied to IOSCO's 2023 DeFi Recommendations and a 2025 Thematic Review assessing implementation progress. Key focuses include enhanced regulatory cooperation (Recommendation 11), addressing gaps in enforcement for Crypto Asset Service Providers (CASPs), and applying CDA Policy Recommendations to DeFi for risks like financial stability, investor protection, and market integrity. Progress is noted in legal frame

What You Need To Do

• Review and comment
• Gap analysis
• Enhance compliance
• Monitor cross-border
• Pilot participation

Key Dates

References

• [1] iosco.org
• [2] sumsub.com
• [3] bis.org
• [4] amf-france.org
• [5] iosco.org
• [6] trmlabs.com
• [7] amf-france.org
• [8] iosco.org

What Changed

This is an enforcement decision rather than new legislation, reinforcing existing prohibitions under Regulation (EU) No 596/2014 (MAR) against market manipulation, including pump-and-dump tactics like false information dissemination and artificial price inflation . No novel regulatory requirements are introduced, but it exemplifies AMF's collaboration with courts for criminal sanctions, potentially increasing deterrence through public naming and fines. Related AMF General Regulation updates effe

What You Need To Do

• Enhance market abuse surveillance systems to detect coordinated trading, unusual volume spikes, and social media-driven hype in small-cap/illiquid assets
• Implement staff training on recognizing pump-and-dump indicators, such as group chats luring investors with upside promises
• Review client communications policies to block manipulative promotions; report suspicions under MAR Article L
• For crypto firms, align with "enhanced" DASP registration and MiCA AML/CFT compliance to preempt manipulation sanctions
• Conduct internal audits of trading patterns and escalate to AMF if risks identified

Key Dates

References

• [1] amf-france.org
• [2] rue.ee
• [3] mexc.co
• [4] mexc.com
• [5] jonesday.com
• [6] morganlewis.com
• [7] amf-france.org
• [8] ainvest.com

What Changed

This is a discussion paper and consultation, not binding legislation, so no immediate regulatory changes or requirements are imposed. Key discussion points include: Defining DeFi based on decentralization criteria (e.g., automation, network architecture, governance, lack of single points of failure). Distinguishing permissioned vs. permissionless protocols and public vs. private blockchains. Regulatory approaches to smart contracts (e.g., certification, varying responsibilities), open-source cod

What You Need To Do

• Submit feedback (past deadline)
• Monitor developments
• Conduct internal assessments
• Enhance compliance programs
• Engage stakeholders

Key Dates

References

• [1] goodwinlaw.com
• [2] coingeek.com
• [3] amf-france.org
• [4] amf-france.org
• [5] amf-france.org
• [6] omfif.org
• [7] amf-france.org
• [8] acpr.banque-france.fr