Cryptoassets – Exchange tokens, utility tokens and
security tokens: What are they? How do they work? Are they safe?
How do I know they are safe? Are consumers protected? Are the firms
creating them, dealing in them, holding them and advising on them
regulated? Do they need to be regulated? How do I know if they are
regulated? It's probably fair to say that if you don't know
the answer to the first two questions, then you probably
shouldn't be thinking about getting involved in the market.
However, as you move further down this road of enquiry, you get to
questions that even the UK financial regulator itself has had to
grapple with.
FCA Guidance on Cryptoassets
In January 2019, the FCA issued a consultation on the regulation
of cryptoassets. The aim of that consultation was to provide
clarity on which cryptoassets, and what activity relating to them,
were regulated and, just as importantly, what was not regulated. It
was also aimed at assisting consumers better
