According to the regulator, companies in the cryptocurrency derivatives market are engaged in activities that require permission from the UK Financial Conduct Authority (FCA).
As the FCA classifies such instruments as financial instruments under the Markets in Financial Instruments Directive II (MIFID II), activities relating to them are subject to relevant statutory provisions, although cryptocurrency itself is not regulated.
Regulated activity is the sale of derivatives, the provision of advice in relation to such a sale, or the provision of other similar services relating to cryptocurrency or tokens issued through an ICO.
Derivatives Cryptocurrency instruments include futures, contracts for difference and options related to cryptocurrency.
A cryptocurrency future is a security that obliges both parties to buy and sell a financial instrument in the future at an agreed price.
A contract for difference is an agreement between the seller and the buyer to transfer the difference between the current value of an asset at the time the contract is concluded and its value at the end of the contract.
A cryptocurrency option is an agreement under which the buyer of the option receives the right to purchase or sell an asset at a pre-agreed price.
“Companies themselves are responsible for obtaining the necessary permits to carry out regulated activities. If a company does not have permission to carry out such activities, it is committing a criminal offense for which it may incur criminal liability,” the regulator said.
According to https://www.out-law.com
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