UK Financial Conduct Authority Issues Final Guidance On Cryptoassets

The UK Financial Conduct Authority ('FCA') has recently issued Guidance relating to cryptoassets attempting to make clear which tokens fall within the UK's jurisdiction. The proposed consultation paper, upon which this Final Guidance is based on, was proposed in January. The FCA is said to have received feedback from 92 respondents coming from numerous banks, trade associations, consultancies, fintechs, amongst other firms and individuals. The FCA has stated that most respondents answering to the Consultation Paper have agreed with many of the proposals set out.

The Guidance's main aim is to classify the types of cryptoassets which fall under already existing categories. Bitcoin and Ether, classed by the FCA as 'exchange tokens' are not expressly regulated even though anti-money-laundering rules may still apply.