top of page
Search

August Regulatory Roundup: The Global Push for Resilience and Digital Transformation

August saw a significant uptick in regulatory activity worldwide, with a clear focus on fortifying operational resilience, navigating the evolving digital asset landscape, and ensuring fair competition in digital markets.


ree

Operational Resilience Takes Center Stage


The European Securities and Markets Authority (ESMA) and the Bank of England (BoE) both released statements underscoring the critical importance of operational resilience. In an increasingly interconnected and digitised world, financial institutions face various threats, from cyberattacks to third-party outages. The regulators stressed the need for robust operational resilience frameworks to safeguard financial stability and protect consumers.


Digital Assets: A Regulatory Balancing Act


The regulatory landscape for digital assets continues to take shape. Jersey introduced a comprehensive framework for regulating tokenised real-world assets, while Abu Dhabi unveiled a regulatory framework for stablecoins. These developments reflect a growing recognition of digital assets' potential and the need for clear rules to mitigate risks and protect investors.


Meanwhile, enforcement actions by the SEC and CFTC reminded us of the ongoing scrutiny of the crypto space.The regulators targeted fraudulent activities and unregistered offerings, emphasising the importance of compliance and investor protection.


The Federal Reserve Board also weighed in, highlighting the importance of cybersecurity resilience in the face of increasing cyber threats. The Bank for International Settlements (BIS) raised concerns about potential market turbulence and carried trade unwinds, further underscoring the need for robust risk management frameworks.


The push for digital transformation is also evident in exploring Central Bank Digital Currencies (CBDCs). The BDI and ECB are actively researching the potential benefits and risks of CBDCs, signalling a broader shift towards digitalisation in the financial sector.


Digital Markets: Competition and Innovation


Regulators are also grappling with the challenges posed by digital markets. The UK Competition and Markets Authority (CMA) launched a market study into digital market competition to ensure a level playing field and promote innovation. ESMA called for evidence on crypto firms' operations, highlighting the need for regulatory oversight in this rapidly evolving sector. The FRB of Philadelphia published research on the impact of "crypto whales," raising questions about market concentration and potential risks.


The Road Ahead


August's regulatory developments paint a picture of a global financial landscape undergoing rapid transformation. The increasing focus on operational resilience, digital assets, and digital market competition reflects the challenges and opportunities presented by technological advancements and evolving market dynamics. Firms must stay abreast of these developments and adapt their strategies to remain compliant and competitive in this new era.



 
 

Sign up to be notified about the latest updates of what we think

The posts listed on the 'What we think' webpages are our interpretation of regulatory developments we have been reading about. They should not be considered legal, regulatory or other advice. Contact us if you want to understand the impact of public policy, regulation and governance changes for you.

bottom of page