| CODE | BKF3330 | ||||||||
| TITLE | Blockchain and Cryptocurrencies | ||||||||
| UM LEVEL | 03 - Years 2, 3, 4 in Modular Undergraduate Course | ||||||||
| MQF LEVEL | 6 | ||||||||
| ECTS CREDITS | 4 | ||||||||
| DEPARTMENT | Banking, Finance and Investments | ||||||||
| DESCRIPTION | This unit will provide students with a comprehensive introduction to distributed ledger technologies, crypto assets and the regulation of this sector. It aims at preparing students to work in this new industry by providing them with the academic background required to understand the global crypto asset industry. An introduction to the topic of distributed ledger technologies and crypto assets will be delivered, which will cover: [a] decentralisation; [b] peer-to-peer networks; [c] permissioned and public blockchains; [d] smart contracts; and [e] the development of the industry. This will be followed by nine lectures that will cover regulation of crypto assets in Malta and on an international level, including the recent reports issued by the Financial Stability Board, the European Securities and Markets Authority and the European Banking Authority. The course will also deal with the practical aspects of crypto asset regulation and how these are dealt with by the regulator and the industry, including: [a] the role of the VFA Agent; [b] the regulatory framework applicable to issuers of coins and tokens and that applicable to exchanges; and [c] the AML/CFT framework applicable in this area. Lectures will be delivered in the following areas: Blockchain & Crypto – How do they work? Lecture 1: Introduction to BlockChain and Distributed Ledger Technology (including Permissioned and Public BlockChains) Lecture 2: A timelapse of the development of crypto-assets Lecture 3: Decentralised Apps and Smart Contracts Lecture 4: ICOs and Crypto Assets – Transfer and Storage of Value Lecture 5: Decentralised Vs Centralised Exchanges Regulation of Crypto Assets and Implementation in Practice Lecture 6: Virtual Financial Assets Act Lecture 7: Regulatory Framework Applicable to Issuers of VFA Lecture 8: Regulatory Framework Applicable to VFA Service Providers Lecture 9: Regulatory Framework Applicable to VFA Agents Lecture 10: The Anti-Money Laundering Framework Lecture 11: Malta Digital Innovation Authority and Innovative Technology and Services Act International Dimension Lecture 12: The International Institutions – Financial Stability Board, Financial Action Task Force, OECD and IOSCO Lecture 13: European Banking Authority and European Securities and Markets Authority Lecture 14: Case Law in Different Jurisdictions Study-unit Aims: The aim of this unit is to give students a better understanding of the blockchain and virtual currencies and the regulation applicable in this regard and to provide the industry with capacity in relation to individuals who have regulatory knowledge of this new area. Learning Outcomes: 1. Knowledge & Understanding By the end of the study-unit the student will be able to demonstrate practical application of the Malta Virtual Financial Assets Act and other related regulation to different business models in the field of crypto assets and blockchain. 2. Skills By the end of the study-unit the student will be able to analyse an operator’s business model in the field of crypto assets and anticipate the effects of blockchain on both short- and long-term business strategy. Further to this course and after gaining practical experience, the students will be able to apply for authorisation by the MFSA to fulfil the role of designated persons licensed under the Virtual Financial Assets Act, including the role of an anti-money laundering officer specialised in the field of crypto assets. Main Text/s and any supplementary readings: Main text - H Kiyoko, Crypto Currency Technologies (2017) - D Drescher, Blockchain Basics: A Non-Technical Introduction in 25 Steps 1st ed. Edition, Kindle Edition (2017, Apress) - https://www.amazon.com/Blockchain-Basics-Non-Technical-Introduction-Steps-ebook/dp/B06XNWF5GP - The ultimate beginners guide to initial coin offerings (2018, Unknown Author, iris.xyz) - https://www.iris.xyz/fintech-network/ultimate-beginners-guide-initial-coin-offerings Policy Documents - European Banking Authority, Report with Advice for the European Commission – Crypto Assets, January 2019 https://eba.europa.eu/documents/10180/2545547/EBA+Report+on+crypto+assets.pdf - European Securities and Markets Authority – Stakeholder Group, Own Initiative Report on Initial Coin Offerings and Crypto Assets, October 2018 https://www.esma.europa.eu/sites/default/files/library/esma22-106-1338_smsg_advice_-_report_on_icos_and_crypto-assets.pdf - European Securities and Markets Authority, Advice Initial Coin Offerings and Crypto-Assets, January 2019, https://www.esma.europa.eu/sites/default/files/library/esma50-157-1391_crypto_advice.pdf - Financial Action Task Force, Guidance for a Risk-Based Approach to Virtual Currencies, June 2015 http://www.fatf-gafi.org/media/fatf/documents/reports/Guidance-RBA-Virtual-Currencies.pdf - Financial Action Task Force, Regulation of Virtual Assets, October 2018 http://www.fatf-gafi.org/publications/fatfrecommendations/documents/regulation-virtual-assets.html - Financial Stability Board, Crypto-asset markets Potential channels for future financial stability implications, October 2018 http://www.fsb.org/wp-content/uploads/P101018.pdf - Financial Stability Board, July 2018, Crypto-assets: Report to the G20 on work by the FSB and standard-setting bodies, athttp://www.fsb.org/wp-content/uploads/P160718-1.pdf - Financial Stability Board, FSB Chair’s Letter to Finance Ministers and Central Bank Governors, March 2018, http://www.fsb.org/wp-content/uploads/P180318.pdf - Financial Stability Board (2017), Artificial intelligence and machine learning in financial services: Market developments and financial stability implications, 2017, http://www.fsb.org/wp-content/uploads/P011117.pdf - IOSCO, Communication on Concerns Related to Initial Coin Offerings (ICOs), January 2018 https://www.iosco.org/news/pdf/IOSCONEWS485.pdf - UK Financial Conduct Authority, Guidance on Crypto Assets, January 2019 https://www.fca.org.uk/publication/consultation/cp19-03.pdf - UK HM Treasury, Financial Conduct Authority and Bank of England, Crypto Asset Task Force – Final Report October 2018 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/752070/cryptoassets_taskforce_final_report_final_web.pdf Articles, Papers and Speeches - Auer R., Beyond the doomsday economics of “proof-of-work” in cryptocurrencies, BIS Working Papers No 765, January 2019 https://www.bis.org/publ/work765.pdf - Bech M. and Garrat R., Central bank cryptocurrencies, BIS Quarterly Review, September 2017 https://www.bis.org/publ/qtrpdf/r_qt1709f.pdf - Gurria A., High Level Panel: Blockchain for Better Policies September 2018 http://www.oecd.org/about/secretary-general/high-level-panel-blockchain-for-better-policies-paris-september-2018.htm - Houben R. and Snyers A., Cryptocurrencies and blockchain Legal context and implications for financial crime, money laundering and tax evasion, European Parliament Report July 2018 http://www.europarl.europa.eu/cmsdata/150761/TAX3%20Study%20on%20cryptocurrencies%20and%20blockchain.pdf - Lagarde C., Addressing the Dark Side of the Cypto World, 13.03.2018 https://blogs.imf.org/2018/03/13/addressing-the-dark-side-of-the-crypto-world/ - Lagarde C., An even-handed Approach to Crypto-Assets, 16.04.2018 https://blogs.imf.org/2018/04/16/an-even-handed-approach-to-crypto-assets/ - Lastra R. and Allen J., G., Virtual currencies in the Eurosystem: challenges ahead, July 2018 http://www.europarl.europa.eu/cmsdata/150541/DIW_FINAL%20publication.pdf - Medcraft G., The OECD and the Blockchain Revolution, March 2018 https://www.oecd.org/parliamentarians/meetings/meeting-on-the-road-london-april-2018/The-OECD-and-the-Blockchain-Revolution-Presentation-by-Greg-Medcraft-delivered-on-29-March-2018.pdf - Nakamoto S, Bitcoin: A Peer-to- Peer Electronic Cash System (2008, Prentice Hall) - https://bitcoin.org/bitcoin.pdf - Zetzsche D. A., et al, The ICO Gold Rush: It's a Scam, It's a Bubble, It's a Super Challenge for Regulators’ 18 August 2018 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3072298 Legislation - Virtual Financial Assets Act - Virtual Financial Assets Regulations - MFSA - Virtual Financial Assets Rules - Malta Digital Innovation Authority Act - Innovative Technology and Services Act - MDIA – Rules and Guidance - Prevention of Money Laundering Act - FIAU – Sector Specific Guidelines Supplementary Text - Books and Articles - Sironi P, FinTech Innovation: From Robo-Advisors to Goal Based Investing and Gamification, Wiley (2016) - Zetzsche D. A., From FinTech to TechFin: The Regulatory Challenges of Data-Driven Finance, April 2017, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2959925 |
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| STUDY-UNIT TYPE | Lecture | ||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Christopher Peter Buttigieg |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2024/5. It may be subject to change in subsequent years. |
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