After the 10-week open consultation period that is now rolling, with deadline 5 April, the UK Financial Conduct Authority (FCA) will be setting out the cryptoasset activities it regulates.
Clarity has been desired
The guidance paper is meant to help firms understand whether their cryptoasset activities fall under FCA regulation or not. The consultation is in response to requests from the industry for greater clarity, as well as to a recommendation from a previous Cryptoasset Taskforce that the FCA should provide additional guidance on existing regulation.
Later in 2019 the FCA plans to consult on banning the sale of derivatives linked to certain types of cryptoassets to retail investors.
Could be this, could be that
The guidance paper that has now been published for consultation sets out where cryptoasset tokens are likely to be …
• Specified Investments under the Regulated Activities Order,
• Financial Instruments under the Markets in Financial Instruments Directive II,
• E-Money under the E-Money Regulations, or
• captured under the Payment Services Regulations.
Rules could apply to various firms involved in different handling steps around the cryptoassets – such as issuing or creating them, marketing products and services, buying or selling, holding or storing. They could also touch actors such as financial advisers, professional advisers, investment managers, recognised investment exchanges, consumers and consumer organisations.