Crypto Regulation Consultations being Prepared by Regulator – Oct 31st 2018
The UK’s financial authorities are planning three separate consultations over the next few months for policing crypto assets. The government also announced it will considerably widen the scope of the Fifth Anti-Money Laundering Directive when it transposes it into UK law next year. The raft of consultations is intended to clarify what types of crypto assets are already subject to existing financial regulation; what crypto assets, wallets and exchanges need to be brought inside the regulatory perimeter; as well as determine which crypto asset products might be unsuitable for retail investors. The FCA proposed ban on derivatives linked to crypto assets goes further than simply onshoring the current temporary ban imposed across Europe by the European Securities and Markets Authority in July. “The proposal to ban crypto derivatives is like using a sledgehammer to crack a nut. Retail CFD providers are already subject to ESMA’s product intervention powers.
Lindsey Rogerson, Regulatory Intelligence