People think crypto regulation exists to prevent fraud, protect investors, and stop money laundering. In reality, crypto and distributed ledger technology regulation functions as a system for allocating trust between code, intermediaries, and institutions in digital finance.

This episode reveals how the law is grappling with systems designed to eliminate the very intermediaries that law has traditionally regulated, creating new frameworks for deciding where trust should reside.

In this episode, I explain:

• Why crypto regulation allocates trust between code and institutions, not prevents crime.
• How custody rules distribute control over private keys and assets.
• Why AML requirements allocate verification responsibilities to intermediaries.
• How smart contracts allocate automated trust through code.
• Why token classification determines which regulatory trust framework applies.

KEY TAKEAWAYS:

• Crypto regulation allocates trust, not prevents fraud.
• Custody rules allocate control over digital assets.
• AML requirements allocate verification obligations.
• Smart contracts allocate automated execution trust.
• Token classification allocates regulatory responsibility.

REFERENCED TODAY:

• Financial Services and Markets Act 2000 (as amended).
• Money Laundering Regulations 2017 (as amended).
• UK Cryptoasset Regulation Consultation (HM Treasury).
• Financial Conduct Authority guidance on cryptoassets.
• Markets in Crypto-Assets Regulation (MiCA) - EU framework.

DISCLAIMER:
This podcast is for general information only. It does not provide legal advice and does not create a lawyer-client relationship.

Always consult a qualified professional for advice specific to your situation.

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