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.
Keywords: Europe, UK, Banking, Securities, PMI, Crypto Assets, Regtech, Fintech, PS19/22, CP19/3, Stablecoin, FCA
Previous ArticleEuropean Parliament Elects Next President of European Commission
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.