The UK's financial regulator said on Friday that firms offering services related to cryptocurrency derivatives must comply with all legal provisions or face severe sanctions.
The Financial Conduct Authority (FCA) does not regulate cryptocurrency-related activities, but does apply the same law to cryptocurrency derivatives as it does to securities derivatives.
The regulator has stated that carrying out or arranging transactions, providing advice or other services related to cryptocurrency derivatives or tokens issued through an ICO is an activity that requires regulatory approval. Such activities also include futures, contracts for differences and options related to cryptocurrencies.
In March, the G20 called on regulators in all countries to oversee the development of digital assets, but failed to coordinate action due to a lack of consensus.
The FCA statement follows that of Treasury Secretary Philip Hammond, who said Britain would set up a task force to manage risks associated with cryptocurrencies and develop the technology blockchain.
The FCA, in turn, stated that: “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 face criminal liability.”
Jake Green, head of licensing at law firm Ashurst, said the FCA announcement provided some clarity and would benefit companies wishing to operate legally. There is no need to be afraid of this decision, as it gives the cryptocurrency some recognition.
According to https://uk.reuters.com
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