The United Kingdom's Financial Conduct Authority published draft guidance on the circumstances in which crypto-assets will fall within its regulatory perimeter and has invited comments and feedback on the draft guidance by 5 April 2019. In particular, it explains how it divides crypto-tokens into the categories of security tokens (which will usually be regulated), exchange tokens, such as crypto-currencies (which will usually not be regulated by the FCA), and utility tokens (which will usually not be regulated by the FCA) and how it determines into which category a particular crypto-asset falls.
This alert will be of particular interest to all stakeholders in the blockchain and crypto-assets sector who are undertaking UK-linked activities or targeting UK investors.
Read our client alert.
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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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