UK:
Financial Conduct Authority Confirms Regulatory Status Of Cryptocurrency Derivatives
16 April 2018
Shearman & Sterling LLP
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On April 6, 2018, the FCA published a statement confirming the
regulatory requirements applicable to firms engaged in
cryptocurrency derivatives. The FCA does not regulate
cryptocurrencies, provided that they do not form part of other
regulated services or products. However, the FCA states that
cryptocurrency derivatives may be categorized as financial
instruments under the revised Markets in Financial Instruments
Directive II and that firms carrying out regulated activities in
cryptocurrency derivatives should comply with the FCA's
Handbook rules as well as the directly applicable EU provisions.
The FCA points out that dealing in, arranging transactions in,
advising on or providing other services that are regulated
activities in relation to derivatives that reference
cryptocurrencies or tokens issued through an Initial Coin Offering
will require FCA authorization.
The FCA's statement is available at: https://www.fca.org.uk/news/statements/cryptocurrency-derivatives.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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