FCA to publish cryptocurrency review later this year

By Jeff Davies
Retail Crowd

The Financial Conduct Authority will be publishing its review of cryptocurrencies in the third quarter this year after issuing several warnings on the controversial digital assets.

The financial watchdog said the review was part of a taskforce with the Treasure and Bank of England.

The FCA 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.

“We will work with the Bank of England and the Treasury as part of a taskforce to develop thinking and publish a discussion paper later this year outlining our policy thinking on cryptocurrencies.”

The FCA has warned that firms offering services linked to cryptocurrency derivatives must meet the regulator’s rules or else face sanctions, and previously it has warned consumers against the danger of initial coin offerings and crypto contracts for difference.