Featured Product

    FCA Publishes Findings from Consumer Research on Crypto-Assets

    March 07, 2019

    FCA published results of the research on UK consumer attitudes to, and awareness of, crypto-assets, such as Bitcoin and Ether, in the UK. The research includes a national survey and qualitative interviews with UK consumers. Out of the pieces of the published research, one report by the research firm Revealing Reality explores the attitudes, understanding, and motivations behind the consumer decisions to purchase and use different crypto-assets. The second report is by the research firm Kantar TNS and it looks at the consumer awareness, understanding, and purchasing habits related to crypto-assets.

    The qualitative research indicated some potential harm, including that many consumers may not fully understand what they are purchasing. However, despite the general poor understanding of crypto assets among UK consumers, findings from the survey suggest that the overall scale of harm may not be as high as previously thought. Seventy-three percent of the surveyed UK consumers do not know what a crypto currency is or are unable to define it. FCA estimates that only 3% of consumers surveyed had ever bought crypto-assets. 

    FCA has previously warned that cryptoassets, including Bitcoin, are highly volatile and risky. Many tokens (including Bitcoin and "cryptocurrency" equivalents) are not currently regulated in the UK. This means that the transfer, purchase, and sale of such tokens currently fall outside the regulatory remit. Thus, it is unlikely that consumers will be entitled to register complaints with the Financial Ombudsman Service or protected by the Financial Services Compensation Scheme, if things go wrong. FCA is working with the Government and BoE, as part of a UK Cryptoassets Taskforce, to understand and address the harms from crypto-assets and encourage innovation in the interests of consumers. FCA is also consulting on the guidance to clarify the types of crypto-assets that fall within the existing regulatory perimeter. Later this year, FCA is expected to consult on banning the sale of certain crypto-asset derivatives to retail investors. HM Treasury is also exploring legislative change to potentially broaden the regulatory remit of FCA to bring in further types of crypto-assets.

     

    Related Links

    Keywords: Europe, UK, Banking, Securities, Crypto-Assets, Regtech, Consumer Research, Distributed Ledger Technology, FCA

     

    Related Articles
    News

    EU Amends IFRS 9 Rule, Changes Concern Interest Rate Benchmark Reforms

    EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9.

    January 16, 2020 WebPage Regulatory News
    News

    FDIC and OCC Issue Statement on Heightened Cyber Security Risk

    In response to the heightened cyber-security risk facing the financial services industry and other critical business sectors, FDIC and OCC issued an interagency statement on heightened cyber-security risk.

    January 16, 2020 WebPage Regulatory News
    News

    BoE and FCA Outline Next Steps for LIBOR Transition in 2020

    BoE, FCA, and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published a set of documents that outline the LIBOR transition priorities and milestones for 2020.

    January 16, 2020 WebPage Regulatory News
    News

    BCRA Updates Regulation on Capital Requirements and Information Regime

    BCRA updated the rules on minimum capital requirements for financial entities and on certain aspects of the information transparency regime for quarterly and annual supervision.

    January 16, 2020 WebPage Regulatory News
    News

    BIS to Expand Central Bank Membership

    BIS is to expand its central bank membership base and to increase collaboration in its work as a forum for international cooperation and as a hub for central banks and other financial authorities.

    January 14, 2020 WebPage Regulatory News
    News

    EIOPA Issues Technical Specifications for Market and Credit Risk Study

    EIOPA published the technical specifications, including instructions, for the market and credit risk modeling comparative study for year-end 2019.

    January 13, 2020 WebPage Regulatory News
    News

    FED Publishes FAQs on Tailoring Rules for Banks

    FED released a letter announcing the publication of an initial set of frequently asked questions (FAQs) in response to questions from institutions.

    January 13, 2020 WebPage Regulatory News
    News

    IA of Hong Kong Publishes Stress Testing Scenarios in Relation to ORSA

    IA of Hong Kong published the prescribed scenarios for stress and scenario testing to be used by the authorized insurers conducting general insurance business.

    January 13, 2020 WebPage Regulatory News
    News

    FDIC Letter on Submission of Call Reports by End of January 2020

    FDIC, in a letter to financial institutions, announced that the Consolidated Reports of Condition and Income (Call Reports) for the December 31, 2019 report date must be submitted to the Central Data Repository of the relevant US agencies by January 30, 2020.

    January 13, 2020 WebPage Regulatory News
    News

    EBA Consults on Calculation of Own Funds Requirements for Market Risk

    EBA is consulting on the draft regulatory technical standards for calculation of the own funds requirements for market risk, under the standardized and internal model approaches of the Fundamental Review of the Trading Book (FRTB) framework.

    January 13, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4489