Welcome to CryptoReg Insights, the blog and podcast that deliver analysis and insights on evolving regulations in digital assets, crypto assets, stablecoins, blockchain, Artificial Intelligence, Cloud Computing and other drivers of banking innovation.
CryptoReg Insights is primarily for professionals in financial institutions and fintech firms. But also tech firms that offer technological solutions to financial institutions may find it valuable.
Maturity of regulations
The timing for launch of CryptoReg Insights is driven by the maturity of regulations that influence the adoption of blockchain and Artificial Intelligence technologies within the financial services industry, and overall preparedness of such firms to launch discuprtive products that leverage these technologies.
Five years ago, discussions regarding blockchain and artificial intelligence were prevalent within the banking community; however, only a limited number of financial institutions actually used these technologies. Currently, nearly every major bank has established a dedicated team focused exclusively on digital assets or crypto assets, and solutions relying on artificial intelligence are an integral part of IT tools.
Banks are subject to numerous regulatory requirements, and this makes them cautious when launching new products, particularly those involving untested technologies in the banking sector. This is because, banking revolves around managing risks. The absence of clear regulatory frameworks prevents banks from accurately assessing their risks. And this could be a serious impediment to innovation.
Continuing with crypto assets example. Five years ago, with some minor exceptions, regulators around the world primarily focused on increasing awareness of the risks associated with crypto assets. Back then, only initial efforts were made to define the regulatory status and classification of these assets.
Fast forward, now EU introduced a very robust Markets in Crypto-Assets regulation (MiCA), UK Treasury is about to finalise rules on new regulated activities for cryptoassets, and further work to be completed by FCA following the publication of its Crypto Roadmap.
Speaking more broadly, recent initiatives show that the regulators are serious about innovation in banking sector.
In the UK market alone, last year saw several large-scale initiatives led by the UK Government. National Payments Vision, Digital Securities Sandbox, AI National Strategy and PISCES. This is just to name a few. And we are just about to see the first ever “Financial Services Growth and Competitiveness Strategy” which should be released on the 15th June 2025. This strategy will foster growth in the financial services sector for the next 10 years. And unsurprisingly, Innovation & Technology and regulatory environment are already identified by UK Treasury among core policy pillars for this Strategy being central to growth of the financial industry.
There is still a long way to go, but there is a significant shift towards clearer regulatory frameworks that will foster the uptake of new technologies by financial industry. And this trend will gain momentum within the next few years.
Challenge in navigating regulatory landscape
Understanding regulations that affect an existing product is fundamental to ensuring compliance. It’s basics. However, being aware of forthcoming regulations that will shape a product in the next two to three years represents a higher level of strategic preparedness. It’s a whole new level.
The information regarding upcoming regulations is publicly available. Typically, the market becomes aware of upcoming policy proposals long time before any regulatory framework is adopted. This is because the regulatory process in major financial centres (such as UK, EU, Singapore) is transparent and includes a public consultation phase. This is when businesses should begin considering new business opportunities. Applying that knowledge to strategic planning can provide a competitive advantage and help stay ahead in the field.
The primary challenge, however, lies in the sheer volume of these regulations. CryptoReg Insights aims to connect the dots and identify regulatory trends.Through blog posts and podcast CryptoReg Insights will provide updates and insights on regulatory developments that affect the adoption of new technologies in the financial industry. This will facilitate understanding of regulatory trends, their impacts, and how to turn them into business opportunities.
Welcome and enjoy our insights!
