Joint industry response to draft crypto amendement SI and CP26/13

UK Finance's joint letter with the Association for Financial Markets in Europe (AFME) covers:

Scope of SICs and RSICs: the scope of the categories of “specified investment cryptoassets” ("SICs") and “relevant specified investment cryptoassets” ("RSICs") as defined in the Cryptoasset SI, including the application of the carve-out for cryptoassets that are "solely a record";
Scope of safeguarding activity in the context of specified investments: the scope of the new regulated activity of safeguarding “qualifying cryptoassets” as defined in the Cryptoasset SI (“QCs”) and RSICs, in the context of (i) record-keeping and registrar type functionalities and arrangements; and (ii) activities of authorised custodians that safeguard interests in RSICs through custody chains and do not hold or store the means of access to those RSICs or appoint anyone to do so; and
Scope of disapplication of MLRs registration requirement: the interaction between The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ("RAO") framework and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the "MLRs") framework, and in particular the scope of the disapplication of the MLRs registration requirement for firms authorised to conduct regulated activities under the RAO other than activities in respect of QCs or RSICs.