The Financial Conduct Authority has finally published a consultation paper which is targeting the regulatory void with cryptocurrencies in the United Kingdom. The main topic of the consultation paper was to explain the guidelines of complying with local regulations that simply graze cryptocurrencies at this point, but will in the future encompass them completely.
According to Gizmodo UK, the FCA is not introducing a regulatory framework as of yet, it’s simply clarifying the agency’s role in the market and highlights the assets that fall under its jurisdiction.
At this moment there are only a few tokens that have direct authority from the FCA and they’re mostly security tokens. This is due to security laws in the country and the nature of having ownership of a company through tokens warrants such laws to be enforced on cryptos.
It’s been nearly 7 months since the FCA announced its plans to come up with this consultation paper, and the UK crypto enthusiasts have been waiting for it with anticipation. The last month’s announcement of potentially placing a ban on crypto CFDs almost destroyed the belief for many traders that the agency would be fair to digital assets, but thankfully that initiative did not affect real cryptocurrencies whatsoever.
The easiest explanation of what the FCA is trying to tell us through the consultation paper is that cryptocurrencies will not be placed under regulation (not all of them for that matter), and those similar to BTC will have to comply with local anti-money laundering laws.
The fact that this detail of the regulation was outlined means that a certain maximum transaction will be introduced, which will be the guiding factor of whether or not the transaction will be reported to the authorities for screening and confirmation.