FCA Publishes Guidance on Cryptoasset Activities Under Its Purview
FCA published a policy statement (PS19/22) that aims to give market participants and interested stakeholders clarity on the types of cryptoassets that fall within the regulatory remit of FCA and the resulting obligations for firms and regulatory protections for consumers. PS19/22 also provides information on cryptoassets that are outside the regulatory perimeter of FCA and what this means for firms and consumers. PS19/22 was issued in response to the related consultation on cryptoassets (CP19/3).
FCA received 92 responses to CP19/3 from across the financial services sector and beyond, including large banks, fintech firms, and token issuers. Most respondents supported the proposals. FCA, therefore, proceeded with some drafting amendments in a few areas to improve clarity and ensure that the policy intention is achieved. FCA has also provided further clarity on tokens commonly referred to as "stablecoins." Minor drafting changes were made throughout the guidance, particularly to provide more clarity where tokens might be e-money. The policy statement summarizes the guidance, the feedback to CP19/3, the FCA response to feedback to CP19/3, and feedback to the market observations section of the guidance, along with the associated response of FCA. The final guidance can be found in Appendix 1 while the associated Q&A can be found in Appendix 2. The guidance also covers security tokens and utility tokens and it sets out where tokens are likely to be:
- Specified investments under the Regulated Activities Order
- E-money under the E-Money Regulations
- Captured under the Payment Services Regulations
- Outside of regulation
The policy statement will alert market participants to pertinent issues and should help them better understand whether they need to be authorized and what rules or regulations apply to their business. This guidance applies to firms issuing or creating cryptoassets, firms marketing cryptoasset products and services, firms buying or selling cryptoassets, firms holding or storing cryptoassets, financial advisers, professional advisers, investment managers, recognized investment exchanges, and consumers and consumer organizations.
Related Links
Keywords: Europe, UK, Banking, Securities, PMI, Crypto Assets, Regtech, Fintech, PS19/22, CP19/3, Stablecoin, FCA
Previous Article
Agustín Carstens of BIS Examines Global and EU Financial IntegrationRelated Articles
FED Proposes to Extend Data Collection Under Stress Testing Guidance
FED proposed three-year extension, without revision, of the information collection FR 4202, titled "Recordkeeping Provisions Associated with Stress Testing Guidance."
FCA Proposes Updates to Guidance on Mortgage Repossessions
FCA updated the draft guidance for firms to ensure that mortgage customers whose homes may be repossessed are treated fairly and appropriately, particularly where there are risks of harm to customers who are vulnerable as a result of the COVID-19 pandemic.
FCA Announces Cessation Timeline for Certain LIBOR Benchmark Settings
FCA issued a statement on the cessation or loss of representativeness of the 35 LIBOR benchmark settings published by ICE Benchmark Administration or IBA.
EBA Publishes Reporting and Disclosures Framework for Investment Firms
EBA published a package that includes the final draft implementing technical standards on supervisory reporting and disclosures of investment firms.
BIS Examines Use of Big Data and Machine Learning at Central Banks
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA Finalizes Reporting Standard for Operational Risk Requirements
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB Publishes Guide for Determining Penalties for Regulatory Breaches
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS Sets Out Good Practices to Manage Operational Risks Amid COVID
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR Announces New Data Collection Application for Banks and Insurers
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
