UK Financial Conduct Authority Releases New Guidelines for Crypto-Assets
Blockchain, Business

UK Financial Conduct Authority Releases New Guidelines for Crypto-Assets

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The UK Financial Conduct Authority (FCA) has published its final report on regulations regarding crypto-assets. Previously in sandbox mode and open to changes, these guidelines will provide further certainty for investors and token issuers.


The FCA is expanding on a consultation paper for crypto-assets released in March. The newly-published guidelines categorize various crypto-assets based on their uses, as defined by the UK Cryptoasset Taskforce Report (CATF). Each of these categories is discussed in detail as to whether they fit into a regulatory standard.

Security tokens are specifically mentioned as one such category, but the report says that the situation regarding non-security tokens is still ‘unregulated.’ As the document reads:

“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 may nevertheless be regulated, for example, when used to facilitate regulated payments,” 

Moreover, stablecoins should not always be considered ‘e-money’ or a security token. They can, in some cases, be a derivative.

Therefore, not every ‘stablecoin’ will meet the definition of e-money, or a security token. For instance, it may be a derivative, a unit in a collective investment scheme, a debt security, e-money, or another type of specified investment. Or, it might fall outside our remit,” the FCA said.

Earlier this month, the FCA brought forward a ban on crypto-related derivatives and other financial products. This was done to protect investors, however the ban has still not gone into effect.


Do you believe the FCA report changes anything or is this more of the same? Let us know your thoughts in the comment down below.

Image courtesy of the FCA.

July 31, 2019

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Tim Fries Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions (IoT).