SWEDEN Law and Practice Contributed by: Robert Karlsson, Helena Rönqvist, Caroline Landerfors and Vilma Slättegård, Magnusson Law
10.5 Regulation of Blockchain Asset Trading Platforms There is no specific regulation on blockchain asset trading platforms in Sweden. If the blockchain asset is classified as a financial instrument, the SMA and other financial regulations will apply. If the blockchain asset is classified as a crypto-asset, the provisions in MiCA will apply. Trading in virtual currencies is further regulated by the CFOA. 10.6 Staking There is no specific regulation on staking services relating to cryptocurrencies in Sweden. However, depending on the situation, staking services may fall under the provisions in MiCA. 10.7 Crypto-Related Lending There is no specific regulation on lending services The offering of cryptocurrency derivatives is not explicitly regulated in Sweden. However, ESMA has stated that derivatives where the underlying asset is cryptocurrencies may be considered a financial instru - ment, making the SMA applicable. 10.9 Decentralised Finance (DeFi) Decentralised finance (DeFi) aims to decentralise many of the financial activities within the financial sys - tem, which are traditionally based on intermediaries or central systems. Activities in this field are growing rapidly, and Sweden stands at the forefront of digitali - sation and new innovations, earning recognition when it comes to DeFi. While there are ongoing projects on DeFi platforms, there is currently no specific regula - tory framework in place for DeFi in Sweden. 10.10 Regulation of Funds Funds that invest in blockchain assets would be subject to relevant fund rules. Note that the SFSA stated in early 2024 that, at this time, they are not likely to authorise funds investing in crypto-assets. The absence of consumer protection regulation for crypto-assets means that cryptofunds are currently considered too risky. relating to cryptocurrencies in Sweden. 10.8 Cryptocurrency Derivatives
rency due to the fact that it can be linked to many common forms of investment fraud. 10.2 Local Regulators’ Approach to Blockchain Sweden currently lacks explicit regulation governing blockchain technology. However, aligning with the EU digital finance package, two new EU regulations have been integrated into the legal framework and are applicable in Sweden: • Regulation (EU) 2023/1114 (MiCA); and • Regulation (EU) 2022/858, establishing a pilot regime for market infrastructure based on distrib - uted ledger technology (the “DLT Regulation”). In conjunction with the EU regulations, the Swed - ish government has adopted a complementary Act with additional provisions to MiCA and introduced a proposal with supplementary provisions to the DLT Regulation. 10.3 Classification of Blockchain Assets MiCA divides crypto-assets into three categories: e-money tokens, asset-referenced tokens and other crypto-assets. While crypto-assets would not normally be consid - ered financial instruments, the evaluation of wheth - er a crypto-asset or blockchain asset qualifies as a financial instrument must be made on a case-by-case basis. 10.4 Regulation of “Issuers” of Blockchain Assets If a blockchain asset is classified as a financial instru - ment, the issuer would be subject to the provisions of the SMA. If the blockchain asset is a crypto-asset, the EU regu - lation MiCA, which covers both issuers and providers of crypto-assets, applies. MiCA contains various pro - visions regulating the issuance of crypto-assets. Any tokenisation of real-world assets must comply with relevant MICA requirements.
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