The Financial Conduct Authority (FCA) has announced its intention to outline its views on cryptocurrencies later this year, as revealed in its business plan for 2018/19.
The UK’s financial regulator noted cryptocurrencies have been “an area of increasing interest for markets and regulators globally” and acknowledged the Treasury Committee’s intention to launch an enquiry. In response, it said: “Cryptocurrencies themselves are not currently within our regulatory perimeter. However, some models of use or packaging cryptocurrencies bring them within our perimeter, making the landscape complex.”
Ultimately the FCA is trying to develop a coherent strategy for dealing with the issues and risks that cryptocurrencies raise. The regulator also addressed its concerns relating to cryptocurrency derivatives and the fact they are not regulated, though they are capable of being “financial instruments under MiFID II”.
Earlier CryptoUK, a self-regulatory trade association for the UK cryptocurrency industry, addressed several Members of Parliament (MPs) to advocate for favourable regulations in the sector, news outlet City A.M. reported May 1. The association set out its proposals in writing to the Treasury Select Committee’s inquiry into cryptocurrencies today. The inquiry intends to examine the role of digital currencies in the UK, including risks connected to their usage by consumers, businesses, and the government.