Last month (September 2018), the House of Commons Treasury
Committee issued a report on its inquiry into the
regulation of crypto-assets. The inquiry examined, amongst other
subjects, the role of digital currencies in the UK; the impact of
distributed ledger (blockchain) technology; and how these should be
regulated. The report recommends improvements to consumer and
anti-money laundering protections (AML) when
dealing in crypto-assets. The improvement will be achieved in part
by extending the Financial Services and Markets Act (Regulated
Activities) Order 2000 (RAO) to crypto-assets and
associated activities.
'Crypto-assets', not 'cryptocurrencies'
As a point of protocol, the report employs the term
'crypto-assets' instead of the more commonly used
'cryptocurrencies' on the basis that they do not
demonstrate the functions of a conventional currency, such as a
medium of exchange or store of value.
