Guidelines for the crypto market in the UK were recently published by the Financial Conduct Authority.
According to a crypto news outlet, The Block, after the draft of the guidelines was released, a more complete explanation was expected. The draft read that if a token was neither a security token nor e-Money than it was unregulated. This simply means that trading cryptocurrency like Bitcoin or Ethereum have to follow only Know Your Customer guidelines and will not be regulated by the Financial Conduct Authority.
On the other hand, in most cases, utility tokens also will not be regulated by this body. The classification of e-Money will be done on an individual basis. Yet, it was stated that crypto coins backed by traditional currencies, stablecoins, will be classified as e-Money in most cases based on their architecture. Hence, stablecoins will most likely fall under the Financial Conduct Authority’s domain.
The new guidelines got much support form the citizens of the country.
According to cryptoUK, the new guidelines offer clarity on the many issues considering cryptocurrency regulations.
the Chief Financial Officer (CFO) of Archax, Matthew Pollard, stated this document demonstrates that great improvements are being made in the area of digital currencies.
