The UK’s top financial watchdog has concluded that Bitcoin and Ether do not require regulation, whereas utility tokens and some stablecoins will.
The FCA Makes Decision on Bitcoin & Crypto Regulation
Only July 31, the Financial Conduct Authority (FCA), announced that it will not regulate Bitcoin and Ethereum. The FCA is the UK’s top financial watchdog and throughout 2018 and 2019 the regulatory body worked diligently to crack down on unlicensed crypto-investment schemes and scam projects.
The FCA issued the statement in a document titled “PS19/22: Guidance on Cryptoassets” and it includes a fresh version of a crypto-asset consultation paper that was made available for public comment earlier this year in January.
The document clarifies that the FCA views Bitcoin and Ethereum as “exchange tokens” which are “usually decentralized and primarily used as a means of exchange. According to the FCA, digital currencies like Bitcoin and Ethererum will not fall within the regulatory jurisdiction of the FCA.