Welcome to 10 For 10, the podcast that brings you the week’s Top 10 compliance stories in one podcast each week. Tom Fox, the Voice of Compliance, brings you the compliance stories you need to know to end your busy week. Sit back, and in 10 minutes, hear about the stories every compliance professional should be aware of from the prior week. Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for the compliance professional, all curated by the Voice of Compliance,...By: Thomas Fox - Compliance Evangelist

On 12 December 2025, the European Banking Authority (EBA) published a Final Report on draft regulatory technical standards (RTS) on the treatment of structural foreign exchange (FX) positions under Article 104c of the Capital Requirements Regulation (CRR).The structural FX provision in Article 352 of the CRR has been subject to various interpretations that have led to differences in its application between EU Member States and across institutions. To promote a harmonised approach within the EU, the EBA published in 2020 own-initiative guidelines (EBA/GL/2020/09) on the practical implementation of the ‘structural FX’ provision. Those guidelines are now transposed into the draft RTS set out in the Final Report, following a mandate provided to EBA in the context of the CRR3 legislative process (see Article 104c of CRR as amended by CRR3).Key elements of the draft RTS include: Maximum open position computation: institutions may consider only credit risk own funds requirements when determining the position that neutralises sensitivity to capital ratios, where credit risk is the main driver of ratio variability. Clarifications on risk positions: the RTS provide further guidance on how institutions should remove FX risk positions from own funds requirements. Policies for illiquid currencies:  dedicated provisions are introduced for currencies that are illiquid in the market, including those affected by Union restrictive measures. The draft RTS will be submitted to the European Commission for adoption following which they will be subject to scrutiny by the European Parliament and the Council before being published in the Official Journal of the EU.

the global regulatory landscape for digital assets is constantly evolving. for entities operating within the crypto space, staying ahead of these changes is paramount. recent amendments to the common reporting standard (crs) by the oecd have significant implications for bvi crypto funds. understanding these updates is crucial for ensuring compliance and making informed strategic decisions. the amendments have expressly expanded key definitions to bring crypto assets into the fold. this means that many bvi and other offshore crypto funds will now find themselves classified as "investment entities" and, consequently, as reporting financial institutions under the crs. what does this mean for your fund? it means new registration, due diligence, and reporting obligations. the expanded "investment entity" test a bvi crypto fund will likely be classified as an "investment entity" if it meets one of two tests. the business activity test: this applies if the fund's primary business activity involves investing, administering or managing "relevant crypto-assets" on behalf of others (type (a). this captures most collective investment vehicles, such as hedge or crypto funds. "primarily" generally means at least 50% of gross income is derived from these activities. the gross income and management test: this applies if the fund's gross income is primarily from investing or trading in relevant crypto-assets and it is managed by another financial institution (like a licensed investment manager) (type (b)). given these broad criteria, a bvi crypto fund will almost certainly be classified as an investment entity. relevant crypto-assets are now "financial assets" the core change is that the definition of "financial asset" under the crs now explicitly includes any interest in a "relevant crypto-asset". this removes previous ambiguity and firmly brings entities dealing primarily in crypto-assets under the same global tax transparency standards as those dealing in traditional finance. bvi implementation and practical consequences the bvi implements the crs through its mutual legal assistance (tax matters) act. this requires all bvi financial institutions, including investment entities, to comply. there are no exemptions for crypto funds. the practical consequences for a bvi crypto fund classified as a reporting financial institution are significant: crs registration: the fund must register with the bvi's international tax authority (ita) through the bvi fars portal. due diligence: it must implement procedures to identify the tax residency of all investors (account holders) and their "controlling persons," which involves collecting and validating self-certification forms. annual reporting: the fund must report detailed information on its reportable investors to the ita by 31 may each year. this includes investor details, account values, and gross proceeds. distinguishing crs from carf it is crucial to differentiate the crs from the new crypto-asset reporting framework (carf). carf targets entities that provide crypto exchange services "as a business," such as exchanges and brokers. a bvi crypto fund that simply invests in digital assets is not providing these services. therefore, it is highly unlikely to be a carf reporting entity. in fact, investment entities under crs are generally "excluded persons" for carf purposes. the fund's obligations will fall under the enhanced crs, not carf. the path forward the crs amendments leave little doubt: most bvi crypto funds are now reporting financial institutions with mandatory compliance obligations. fund managers must act to assess their status, register with the ita, and implement robust systems for due diligence and annual reporting. for further guidance and support, the harneys team is here to provide the expert legal guidance needed to navigate these changes and ensure your fund remains fully compliant.