Cryptocurrency: an insight into regulation
- Posted on: 10 October 2018
There are continuing questions about how regulation should be implemented for crypto assets, given the virtual, international and cross border nature of cryptocurrency. It’s a complex topic. Some crypto firms are regulated because of wider business activities, which bring them into the scope of the FCA rules. Others choose to invite regulation because of the market kudos and respectability it brings. Others still have not needed to be regulated – so far – but soon will be.
There isn’t yet any formal published or proposed guidance from the FCA or Bank of England for crypto businesses on this. The FCA says it is likely to continue reviewing individual business applications on a case-by-case basis. But, although it’s still evolving, the regulators’ approach to crypto assets is starting to crystallise, as evidenced with the publication on 19 September 2018 of Treasury's Select Committee Report and Findings on Crypto Assets.
So if you’re running a cryptocurrency business, or thinking about setting one up, you need to be thinking about whether you need authorisation and regulation in the UK, and about the implications of that for your business.
This guide will help you. It provides clear explanations of the activities that are currently in the scope of FCA regulation, talks about the impact of 5MLD and details the FCA application process and what happens after authorisation.