FCA Guidance on UK Crypto-Assets Regulation

The United Kingdom’s Financial Conduct Authority published draft guidance on the circumstances in which crypto-assets will fall within its regulatory perimeter and has invited comments and feedback on the draft guidance by 5 April 2019.  In particular, it explains how it divides crypto-tokens into the categories of security tokens (which will usually be regulated), exchange tokens, such as crypto-currencies (which will usually not be regulated by the FCA), and utility tokens (which will usually not be regulated by the FCA) and how it determines into which category a particular crypto-asset falls.

This alert will be of particular interest to all stakeholders in the blockchain and crypto-assets sector who are undertaking UK-linked activities or targeting UK investors.

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