The UK’s Financial Conduct Authority (FCA) has announced its intention to outline its views on cryptocurrencies later this year, as part of its business plan for 2018/19.
The UK’s financial regulator noted cryptocurrencies have been “an area of increasing interest for markets and regulators globally” and acknowledged the Treasury Committee’s intention to launch an enquiry.
In response, it said: “Cryptocurrencies themselves are not currently within our regulatory perimeter. However, some models of use or packaging cryptocurrencies bring them within our perimeter, making the landscape complex.”
The regulator also addressed its concerns relating to cryptocurency derivatives and the fact they are not regulated, though they are capable of being “financial instruments under MiFID II”.
The statement continued: “Last year, we issued consumer warnings on cryptocurrency Contracts for Difference and the risks of Initial Coin Offerings (ICOs). We will work with the Bank of England and the Treasury as part of a taskforce to develop thinking and publish a Discussion Paper later this year outlining our policy thinking on cryptocurrencies.”
International Investment reported the CEO of deVere’s comments on the FCA’s intention, and his opinion that it will be “one of the most impactful regulatory reviews in modern times” and “will shape the burgeoning crypto market for years to come.”