Keyrock presentation for B4B launch event

1. Marc Toledo Christophe Maertens Nathanaël Ackerman +800 Ecosystem
representants
8’ to inspire Blockchain4Belgium crafting recommendations for the Belgian Government
The Case for Regulatory Clarity
Kevin de Patoul
Keyrock

2. Marc Toledo Christophe Maertens Nathanaël Ackerman
+800 Ecosystem
representants
Instead of providing regulatory clarity, the SEC
regulates by enforcement
Coinbase example
2021 2022 2023
IPO approved by
SEC
SEC review of
Coinbase business
operations
22/03
SEC Wells notice
Possible violation of securities law
for a portion of listed digital asset,
staking service and wallet service
Alleged multiple attempts from Coinbase towards
registration
• developed and proposed 2 different crypto registration models
•met more than 30 times with SEC
• invited the SEC for feedback
-> At no point SEC provided feedback or regulatory clarity

3. Marc Toledo Christophe Maertens Nathanaël Ackerman +800 Ecosystem
representants
Failure of financial regulation
Could FTX have been avoided if regulation was applied ?
FTX can be blamed for… …What if MICA was applied to FTX ?
60(1)(a) Crypto-asset service providers shall, at all times, have in place
prudential safeguards equal to an amount of X
Art. 54 (h) a description of the applicant crypto-asset service provider’s
internal control mechanism, policies, controls and procedures to identify,
assess and manage risks, including ML/TF risks, and business continuity plan
Art. 65 Identification, prevention, management and disclosure of conflicts of
interest
Art 63 (1) Crypto-asset service providers that hold crypto-assets belonging to
clients or the means of access to such crypto-assets shall make adequate
arrangements to safeguard the ownership rights of clients, especially in the
event of the crypto-asset service provider’s insolvency, and to prevent the use
of a client’s crypto-assets for their own account.
Art. 54 (f) proof that members of the management body of the applicant
crypto-asset service provider are of sufficiently good repute and possess
appropriate knowledge, skills and experience to manage that provider;
• Insufficient reserves
• No risk management or strategy
• Conflict of Interest
• No safekeeping of assets
• Lack of skills of management body
Source: Elizaveta Palaznik

4. Marc Toledo Christophe Maertens Nathanaël Ackerman +800 Ecosystem
representants
Having some clarity on some topics is better than
waiting for full clarity on everything
• 2019 : LOI PACTE
• Two stage regulatory process (compulsory & optional)
• 2023 : LOI DDADUE (Pre – MICA)
• compulsory authorisation as from 1 Jan 2024
• 2024 : MICA
France example
Regulatory Regime 67 Actors registered*
• Circle (WIP)
• Coinhouse
• Bitpanda
• Bitstamp
• Luno
• Swissborg
• …
• AXA
• Societe generale
• Caisse des dépots
• ETORO
• …
* Source: AMF 27/03/2023

5. Marc Toledo Christophe Maertens Nathanaël Ackerman +800 Ecosystem
representants
Belgium should adopt a proactive regulatory
approach
Advantages of being a precursor :
Regulatory clarity, at least on some topics (worse than full clarity, but better than no clarity)
Consumers protection with some basic checks in place
Enhance regulator’s knowledge about the crypto industry
Enhance crypto firms knowledge about regulation
Boost the digital economy in Belgium

6. Marc Toledo Christophe Maertens Nathanaël Ackerman +800 Ecosystem
representants
🤝 Let’s connect or have a chat.
📨: kevin@keyrock.eu
Contact me