The Financial Conduct Authority (FCA), the U.K.’s top financial regulatory body announced Bitcoin and Ethereum free from regulations on Wednesday. The authority stated that virtual currencies like Bitcoin and Ethereum would not fall within the regulatory jurisdiction of the FCA.
Following the document released by the FCA in January, it is now simplified that the authority views Bitcoin and Ether as decentralized exchange tokens. The report was titled “PS19/22: Guidance on Cryptoassets” and showcased the rules in the consultation paper 19 (CP19). The FCA reported that the majority of the responses confirmed the document.
Regulation continues for security and utility tokens.
On the other hand, the top watchdog did declare the provision of security and utility tokens as they come within the organization’s sphere. According to FCA, “security tokens are similar to securities such as shares and debt instruments,” and can be regulated if the authority marks it as a priority.
FCA had worked throughout 2018-2019 to break on unlicensed crypto-investment plans and scam projects. They wrote, “Any token that is not a security token, or an e-money token is unregulated. However, market participants should note certain activities that use tokens nevertheless be regulated, for example, when used to facilitate regulated payments.”
The regulatory service advised market participants to use guidance to understand crypto-assets. Christopher Woolard, FCA executive director of Strategy and Competition, quoted, “This is a small, complex and evolving market covering a broad range of activities. Today’s guidance will help clarify which crypto-asset activities fall inside our regulatory perimeter.”
