The FCA has published ‘Guidance on Crypto Assets’ end of July 2019, https://www.fca.org.uk/news/press-releases/fca-provides-clarity-current-cryptoassets-regulation
The main areas of focus are:
- To secure an appropriate degree of protection for consumers;
- To protect and enhance the integrity of the UK’s financial system;
- To promote effective competition in the interest of consumers.
It outlines where tokens are likely to be:
- Specified Investment under the RAO (Regulated Activity Order)
- Financial Instrument under MiFid II
- E-Money under the EMRs
- Captured under the PSRs
which brings in scope:
- Firms issuing or creating cryptoassets
- Firms marketing cryptoasset products and services
- Firms holding or storing cryptoassets
- Professional advisers
- Investment managers
- Recognised investment exchanges, multi-lateral trading facilities and organised trading facilities
- Consumers and consumer organisations
Do I need to be authorised by the FCA?
Specified activity by way of business in the UK
Involving a crypto asset which is a specified investment
i.e. Security Tokens (FSMA)
Or
E-money Tokens (EMR)
Or
If Tokens are used to facilitate regulated payment services (PSR)
Also
A Municipal Bank, Credit Institution or Credit Union
Issuing E-money tokens is a regulated activity.
