Guidance On Cryptoassets: UK Financial Conduct Authority Issues Consultation Paper

On January 23, 2019, the UK Financial Conduct Authority ("FCA") issued its widely anticipated "Guidance on Cryptoassets" consultation paper CP19/3 (the "Consultation"). The Consultation followed the UK Cryptoassets Task Force's publication last October, which set out the UK's policy and regulatory approach to cryptoassets and distributed ledger technology and called for the FCA to issue guidance on its regulatory perimeter. The purpose of the Consultation is to provide guidance on the proposed rules that the FCA intends to implement in relation to cryptoassets and to provide market participants with the opportunity to provide initial feedback.

Amongst other things, the Consultation provided some helpful clarification as to where cryptoassets would fall within the FCA's regulatory perimeter.