The Financial Conduct Authority (FCA) is consulting on guidance which will set out the cryptoasset activities it regulates.
This is aimed at helping firms understand whether their cryptoasset activities fall under FCA regulation and whether they need to be authorised and have appropriate consumer safeguards in place.
The consultation is in response to industry request for greater clarity, and to the Cryptoasset Taskforce’s recommendation that the FCA provides guidance on the existing regulatory perimeter.
The Cryptoasset Taskforce report, published in October 2018, laid out a broad overview of the benefits and risks of cryptoassets and distributed ledger technology (DLT), as well as the UK’s policy and regulatory approach.
Christopher Woolard, executive director of strategy and competition at the FCA, commented: “This is a small but growing market and we want both industry and consumers to be clear what is regulated, and what isn’t.”
The regulator noted that an increasing number of consumers are investing in cryptoassets, something which it has already warned should be approached with caution.
“Consumers may be unaware of the limited regulatory protections for cryptoassets services that fall outside the FCA’s regulatory remit, such as the lack of recourse to the Financial Services Compensation Scheme and the Financial Ombudsman Service,” it added.
While the FCA conceded that cryptoassets have the potential to bring benefits to markets, firms and consumers, there remain considerable risks.
Later this year the FCA will consult on banning the sale of derivatives linked to certain types of cryptoassets to retail investors, while the government is planning to consult on whether to expand the regulatory perimeter to include further cryptoasset activities.
The FCA is asking for comments on the consultation paper by 5 April.
Cryptoassets include many different types of products. Some activities fall within the FCA’s regulatory remit, while others do not.
The most popular forms of cryptoassets include exchange tokens, or cryptocurrencies, such as Bitcoin and Litecoin. The guidance also covers security tokens and utility tokens.
Latest News
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories