UK Issues Consultation Paper on Cryptoassets

Executive Summary

  • The Financial Conduct Authority (FCA) released a consultation paper outlining the types of cryptoassets and how they fit under the FCA’s regulatory perimeters.

Details

  • 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.
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