FCA Issues Crypto Handbook Notice; TNFD Guidance Adopts LEAP for Water Risk
What happened
The Financial Conduct Authority published Handbook Notice 144, which includes perimeter guidance for regulated cryptoasset activities and changes to the Collective Investment Schemes Sourcebook. Separately, the Taskforce on Nature-related Financial Disclosures released final sector guidance for technology and communications, which features a new LEAP use case for assessing water-related risks in semiconductor manufacturing and datacenter infrastructure.
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Why it matters
The FCA notice establishes specific regulatory instruments for crypto activities. The TNFD guidance provides a practical framework for organizations in the technology and communications value chain to identify, manage, and disclose nature-related dependencies and risks, particularly concerning water.
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Who's involved
- Financial Conduct AuthorityPublished Handbook Notice 144, setting out perimeter guidance for crypto assets.
- LEAPIts methodology is used in the TNFD guidance to assess water-related risks.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- AMDSpeculative
Might face increased operational costs for semiconductor manufacturing due to TNFD guidance mandating water risk assessment.
- CoinbaseSpeculative
Could face higher compliance costs due to the regulatory changes introduced by the Financial Conduct Authority Notice 144.
- BinanceSpeculative
Could face higher compliance costs due to the regulatory changes introduced by the Financial Conduct Authority Notice 144.
- LEAPSpeculative
May see increased market demand and relevance as its methodology is validated by the TNFD guidance.
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The entities involved
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Financial Conduct Authority
quasi-governmental agency in the United Kingdom