UK Financial Watchdog Publishes Cryptoasset Guidance

- Advertisement -

After multiple requests for guidance, the UK’s Financial Conduct Authority is working on guidelines for cryptoasset activities.

The Financial Conduct Authority (FCA), an independent financial regulatory body in the UK, has begun consulting on guidance related to cryptoassets, according to a January 23 release. The financial watchdog aims to give firms greater clarity and understanding surrounding cryptoasset activities to ensure that these entities comply with regulations and protect consumers. The consultation comes in response to requests from both the financial industry and HM Treasury’s Cryptoassets Taskforce for further guidance.

Although the FCA maintains that the number of cryptoasset investors is “relatively small,” it believes it needs to “address the harms from cryptoassets and encourage innovation in the interest of consumers.” Christopher Woolard, the FCA’s director of strategy and competition, noted:

“This is a small but growing market and we want both industry and consumers to be clear what is regulated, and what isn’t. This is vital if consumers are to know what protections they’ll benefit from and in ensuring we have a market functioning as it should.”

The FCA has published a consultation paper and is soliciting feedback from consumers and firms alike. The consultation period will last 10 weeks, ending on Friday, April 5. A policy statement will then be made by the FCA during the summer of 2019.

Later in the year, the FCA plans to “consult on banning the sale of derivatives linked to certain types of cryptoassets to retail investors.”

The financial watchdog has provided crypto-related guidance before. On June 11, 2018, the FCA published an open letter to UK bank CEOs advising them to “take reasonable and proportionate measures to lessen the risk of [their] firm[s] facilitating financial crimes which are enabled by cryptoassets.”

- Advertisement -

In general, though, the FCA is wary of cryptoassets, asserting that consumers should be cautious and be prepared to lose their money.

Dani is a full-time writer for ETHNews. He received his bachelor’s degree in English writing from the University of Nevada, Reno, where he also studied journalism and queer theory. In his free time, he writes poetry, plays the piano, and fangirls over fictional characters. He lives with his partner, three dogs, and two cats in the middle of nowhere, Nevada.

Like what you read? Follow us on X @Bitnewsbot to receive the latest UK, FCA or other Ethereum law and legislation news.

- Advertisement -



Previous Articles:

- Advertisement -

Latest News

Solo Bitcoin Miner Strikes Block, Earns $373K Amid Rising Difficulty

A solo Bitcoin miner earned $372,773 by mining block 907283 on Saturday.The block contained...

Coinbase Base App Rebrand Sparks Zora Token and SocialFi Surge

Coinbase rebranded its Wallet to the Base App on July 16, sparking a surge...

Solana Holds $177 Support as ETF Delays Weigh, Eyes $205 Rebound

Solana (SOL) saw its price fall by 3.2% this week after a strong rise...

Astronomer Turns Viral CEO Kiss Cam Scandal Into Data-Driven Win

Astronomer, a data infrastructure company, faced a viral public incident involving its CEO and...

Japan’s Crypto Bottleneck: Regulation, Not Taxes, Drives Talent Out

Regulatory approval delays are causing crypto startups to leave Japan.A proposed 20% flat tax...

Must Read

What Are Anonymous Debit Cards And How Do They Work?

You've heard about anonymous debit cards, but what are they really? Anonymous Debit Cards are cards that let you make purchases without revealing your...