U.K. financial regulator published consultation paper on crypto regulation

January 24, 2019
Chris Wheal

The U.K. Financial Conduct Authority (FCA) has published a preliminary paper about the evaluation of cryptocurrency and the possible regulations that can be implemented on it in existing U.K. laws.

FCA’s Cryptoasset Taskforce has been working on the report and will continue doing so in order to find out how the cryptocurrency works in certain investments; financial instruments; e-money. The Taskforce has been also looking into how to properly define cryptocurrency in the financial industry.

The paper’s initial findings are meant to begin a more solid understanding about the possible definitions of what cryptocurrency could be, fall under and currently is. The three different token categories that crypto could potentially fall under are: utility, exchange or security.

These new potential definitions would affect firms who issue, create, market, buy, sell, hold or store crypto; financial, professional and investment advisers; investment exchanges; and consumers and consumer organizations.

Currently, the FCA is requesting feedback on the paper. The deadline for feedback is April 5. Everyone can email feedback or suggestions to fcacrypto@fca.org.uk or, or write to Innovate, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN.

The final version of the report will come after the consultation period ends on April 6.

A month ago, on December 20th, U.K. national tax agency, HM Revenue & Customs (HMRC), released its first detailed tax legislation for private cryptocurrency holders, named “Cryptoassets for Individuals.”

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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