The Financial Conduct Authority (FCA), the UK watchdog for consumer and investment protection, has published revised guidance on cryptoassets following consultation
The finalised guidelines fall in line with existing norms and match recommendations the FCA received from the industry
The regulator has, however, kept its tough stance on crypto derivatives trading
After promising to deliver clarification on crypto assets last year, the UK financial watchdog, the FCA, has published an updated report on the crypto market in the country.
Wednesday’s guidance is as expected, offering a comprehensive overview of what the FCA will regulate in the space. The new rules also closely follow the FCA’s draft “proposals” issued in January, declaring that “any token that is not a security token, or an e-money token is unregulated.” In short, that means those trading cryptocurrencies like bitcoin and ether will remain free from the watchdog’s scrutiny, needing to adhere only to KYC rules.
Commentators said the industry “has been operating on [these rules]…already” but that having fresh regulatory guidelines would take away additional uncertainty.