• The U.K and Australia have recently presented their crypto regulation visions, with the British Treasury having a liberal approach while Australia has proposed a taxonomy of all crypto assets.
• Hong Kong’s local monetary authority proposes to prohibit operations of algorithmic stablecoins in the country whereas the SEC admitted on record that the LBRY token is not a security.
• The consultation papers by both countries cover topics such as troubles of algorithmic stablecoins, nonfungible tokens, initial coin offerings, smart contracts, and more.

The U.K.’s Outline for Future Financial Services Regulatory Regime for Crypto

The U.K. Treasury has released an outline for its upcoming financial services regulatory regime for cryptocurrencies and digital assets. This includes topics such as troubles of algorithmic stablecoins, non-fungible tokens (NFTs), initial coin offerings (ICOs) and data sharing requirements for digital asset operators. The regulation does not propose a ban on algorithmic stablecoins or excessive requirements on data sharing – instead it takes a liberal approach towards regulating the market.

Australia’s Taxonomy of Crypto Assets

Australia has also released a consultation paper that proposes several basic definitions for all things crypto related – including crypto asset services, intermediated crypto assets, network tokens and smart contracts – based on a „functional“ and technology-neutral method known as „token mapping“. This is part of their multistage reform agenda to regulate the market effectively.

Hong Kong’s Proposal Regarding Algorithmic Stablecoins

In contrast to the U.K., Hong Kong’s local monetary authority has proposed to prohibit operations of algorithmic stablecoins in the country in its consultation summary document.

SEC Determines That LBRY Token Is Not A Security

The United States Securities and Exchange Commission (SEC) has admitted on record that the LBRY token is not a security but rather an open source software protocol upon which other activities may be built – thus providing clarity around how certain projects will be regulated going forward in the US market space.

Conclusion

These recent developments by major jurisdictions show how cryptocurrency regulation is progressing globally and how different approaches are being taken across jurisdictions when it comes to regulating this new asset class