UK Regulators Plan to Supervise Security Tokens and Stablecoins

UK Regulators Plan to Supervise Security Tokens and Stablecoins

The United Kingdom Financial Conduct Authority published a consultation paper on how crypto assets should be regulated. The document highlighted the possibility to oversight security tokens and determined stable coins.

The “Guidance on Cryptoassets” is now in open consultation until April 5, 2019. Then, a policy statement will be published in the summer of 2019.

Previously, the FCA worked on crypto assets as part of a crypto taskforce. Now, “this consultation paper is the next step in the FCA’s work on crypto assets and sets out details on where different types of crypto assets might fall in the regulatory perimeter.”

The crypto industry in the United Kingdom remains small and despite the “activity in the UK has grown in recent years,” the paper highlights, “the number of firms carrying out crypto asset activities in the UK remains small and the overall size of the UK market represents a small percentage of the overall global crypto asset market.”

As Christopher Woolard, executive director of Strategy and Competition at the FCA, said, “this is a small but growing market and we want both industry and consumers to be clear what is regulated, and what isn’t. This is vital if consumers are to know what protections they will benefit from and in ensuring we have a market functioning as it should.

The paper categorised crypto assets into three types: Exchange tokens, Security tokens, and Utility tokens.

While the Exchange tokens are not issued or controlled by any central authority, Securities are tokens that represent specified investments like a share or a debt instrument.

Exchange tokens do not fall under the FCA’s framework as they are not recognised as legal tender in the United Kingdom.

On the other hand, Security tokens will be classified as investments assets as their nature and definition fall under the Financial Services and Markets Act 2000. “These products are also capable of being financial instruments under MiFID II.”

Stablecoins can also fall under the security tokens framework as they are “backed by certain assets (which may include Specified Investments), a basket of crypto assets, or potentially through algorithms that maintain the supply of the token.”

Utility tokens grant holders access to services or expected products of the organisation, but they do not have rights over the issuer.

Recently Similar News

cex-promotion etoro-promotion

Latest Guides

Latest News

CoinEx,Listings,Margin Trading,Promotion

CoinEx Announce Free Margin Trading Borrowing & KDA Listing

CoinEx have announced a period of free borrowing for margin trading and the listing of a new token known as KDA with a trading competition attached. The first of these announcements has come as means to celebrate the Bitcoin Cash (BCH) Halving which is scheduled for later this year. In March, the mining reward for […]

20 January, 2020
Coinbase,Cosmos,Exchange Platforms,Listings

Cosmos (ATOM) Is Now Live at Coinbase

Earlier this week, Coinbase listed the native token of an interoperable blockchain protocol that facilitates the transfer of data between existing chains, Cosmos. The token known as ATOM has been live on the platform since Thursday across the Coinbase platform This includes the possibility to do so while on the go on either the mobile […]

19 January, 2020
KuCoin,Listings,Margin Trading,Promotion

Borrow New Tokens on KuCoin Margin Trading With 0% Interest

KuCoin have expanded their listed tokens on their platform with the addition of 5 new tokens available to traders and are offering zero interest on these tokens as a special promotional offer. The KuCoin margin trading service is one of the newest products offered by the trading platform and has become an area of their […]

19 January, 2020
Exmo,Fiat,Updates

You Can Now Trade with Kazakhstan Tenge (KZT) at EXMO

EXMO has added to their fiat currency trading options with the inclusion of the Kazakhstan Tenge which became available on the platform earlier this week. EXMO hey were already one of a limited number of platforms that offered Polish Zloty, Ukrainian Hryvnia and Turkish Lira, but the decision to choose the Kazakhstan Tenge (KZT) is […]

18 January, 2020
Custodian,Fee Decrease,Kraken,Promotion

You Can Fund Your Kraken Account For Free This February

This February you can fund your Kraken account for free when you use Etana Custody. Etana is a custody service that operates with Tier 1 banks across the globe and holds offices in prominent locations of the financial world such as USA, Singapore, Japan, and Europe. The core model of the business is the offering […]

17 January, 2020
CEX,Launch,Stake,Staking

CEX’s New Automatic Staking Feature Has Officially Gone Live

The CEX Automatic Staking Feature has gone live with 4 tokens currently available to stake on the platform. CEX announced news of the staking feature last week but didn’t designate a specific time for it to launch. However, CEX users were informed yesterday that staking was up, running and ready for users to start earning […]

16 January, 2020
Acquisitions,Australia,Kraken,Updates

Kraken Acquires Australian Firm, Bit Trade

Kraken has announced the acquisition of Bit Trade – the longest-running Australian crypto service provider. Bit Trade has been in business since as far back as 2013. In that time, it has established a solid reputation thanks to its intuitive and sophisticated products and its assistance on ensuring security and regulatory compliance. This made it […]

15 January, 2020
Binance,Listings,Twitter,Vote

Vote For New Binance Listing and Win Tokens Worth $300

Binance traders who are looking to get more closely involved in their platforms community and have their say on a future project on the platform can win $3,000 in tokens for doing so. In what is the 5th of such votes offered so far by the platform, Binance are encouraging users to vote for one […]

15 January, 2020