- The Financial Conduct Authority (FCA) released a consultation paper outlining the types of cryptoassets and how they fit under the FCA’s regulatory perimeters.
- The FCA categorises cryptoassets into three types of tokens: exchange tokens, security tokens and utility tokens.
- Exchange tokens are assets not issued or backed by a central authority, are intended for the purchase of good and services, and are not considered to be currencies e.g. Bitcoin, Litecoin. They are not within the FCA’s regulatory perimeter.
- Security tokens are assets that share similar characteristics with traditional securities, eg. shares. They are within the regulatory perimeter.
- Utility tokens are assets that give users access to products or services and share similar characteristics with pre-payment vouchers. They are might be within the regulatory perimeter.
- The consultation period ends on 5 April 2019.
- The final paper is expected to be published by summer 2019.