Europe: Finance and Banking

The European Commission's review of MiCAR presents a critical opportunity to reconsider how asset-referenced tokens are regulated. With no authorised ART issuers to date, the current framework may be imposing disproportionate regulatory burdens that fail to distinguish between tokens creating genuine counterparty risk and those representing direct ownership of underlying assets. Should European regulators adopt a more nuanced approach that differentiates asset-referenced tokens from asset-representing token

The UK's cryptoasset regulatory landscape is undergoing a major transformation with new FCA rules taking effect in October 2027. Firms engaging in activities like stablecoin issuance, safeguarding, and trading platforms must now navigate authorisation requirements, with an application gateway open until February 2027.

The Guernsey Financial Services Commission has introduced significant regulatory reforms to strengthen the island's position as a leading digital finance centre, including new guidance on asset tokenisation and streamlined licensing requirements. These changes aim to reduce complexity while maintaining robust regulatory standards, with further stablecoin regulations expected in autumn 2026.