FCA clarifies cryptoasset regulation

Compared with some other regulators globally, the Financial Conduct Authority has been ‘hands off’ in its approach to the fast-growing and often controversial crypto industry. Draft guidance, which sets out a three-category classification approach, provides clarification – but there will likely be grey areas in practice, comment Ian Mason and Sushil Kuner.

Ian Mason is a partner and head of financial services regulation at Gowling WLG (ian.mason@gowlingwlg.com). Sushil Kuner is a senior associate specialising in financial services regulation (sushil.kuner@gowlingwlg.com).

In January 2019, the FCA published a consultation paper [1] that sets out guidance on how cryptoassets can be subject to its regulation. The Guidance is relevant to any firm issuing, creating, buying, selling, holding or storing cryptoassets, firms marketing cryptoasset products and services, as well as their advisers.