FUTURE MATTERS
In this paper, we provide an overview of the current regulatory landscape for digital assets in key markets across the globe. We also highlight some of the work we have done to learn and grow within the tokenised asset space, in particular via a series of experiments with our clients and trusted partners.
Foreword
Haroun BOUCHETA
Head of Public Affairs, Sercurities Services, BNP Paribas
Wayne HUGHES
Head of Digital Assets, Securities Services, BNP Paribas
As the financial services industry continues its digital transformation, custodians have a significant role to play in ensuring the safety and security of all client assets, digital or otherwise.
The regulatory landscape within the digital assets space is fast-changing and authorities are placing great emphasis on a cautious, measured, and informed approach to digital asset service provision. With this in mind, BNP Paribas is closely following regulatory developments as they evolve. We are adopting an incremental approach to building the strong foundations required to support our clients on their digital asset journey.
This paper highlights some of the work we have done to learn and grow within the tokenised asset space, in particular via a series of experiments with our clients and trusted partners. It also provides an overview of the current regulatory landscape in key markets across the globe with a view to helping our clients navigate the various requirements in each jurisdiction.
A common global taxonomy may currently be lacking for these assets, but it is our duty to engage with regulators and help to build sensible and proportionate digital asset regulation for the future of the industry. Likewise, exploring the potential of blockchain to transform key processes within the industry enables us to adapt our own services as necessary to allow clients to truly benefit from these developments.
Global regulatory outlook for digital assets
A globally focused and comprehensive regulatory framework for digital assets would serve to protect investors and help to define services for market participants, while also fostering innovation in the digital asset space.
However, the current reality the industry is faced with is a patchwork of in-flight regulatory initiatives across the major global markets that sometimes conflict in key areas, particularly in the definition of various digital assets.
To help you navigate the various requirements, we provide an overview of the regulatory landscape for the following jurisdictions:
- European Union
- France
- Germany
- Luxembourg
- United Kingdom
United States - Hong Kong
- Singapore
- Australia
Digital assets: learning by doing
Each of our experiments has taught our teams important new lessons about the realm of digital assets and the legal, operational, technology and compliance dynamics of this evolving market
- Digital cash
- DLT and fund distribution
- EIB bonds: the Venus and Mars experiments
- Assessing the full lifecycle of an ESG-focused tokenised bond
As a global custodian, Securities Services at BNP Paribas aims to support its clients should they wish to enter the digital asset space. We are the long-term partner of choice of our clients, and as such, we believe that innovation and protection of our clients’ interests should go together.
Fostering real, durable change is a process. That is why we are taking an incremental approach, experimenting with distributed ledger technology and digital asset processes in regulated environments to build a resilient, compliant, and sustainable digital asset space.
As digital asset regulatory frameworks across the globe continue to evolve, market participants need to get to grips with the requirements of new and emerging asset classes. Much like the regulators themselves, market participants from across the value chain must experiment with distributed ledger technology (DLT) and digital asset processes to better understand their operational, legal, and administrative aspects.
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