The Financial Conduct Authority (FCA), which is the financial regulator for the United Kingdom will soon publish its thoughts on cryptocurrencies. This is according to an article published in the Reuters News Agency.
In the FCA’s recent memorandum, which outlines this year’s business strategy for the agency, stated that cryptocurrencies are “an area of increasing interest for markets and regulators globally.” The FCA also admitted that digital coins are not directly under its regulatory jurisdiction However, The Financial Conduct Authority also stated that particular business models that sell or distribute these online tokens, will bring digital token under its review in a rather “complex landscape.” The “Cryptocurrencies are not money” debate continues on both sides of the Atlantic, with the SEC debating the same.
The Financial Conduct Authority did also said that they intend to publish its own policy review on digital tokens, before the end of the year.
In the memorandum, the Financial Conduct Authority said that “we will work with the Bank of England and the Treasury as part of a taskforce to develop thinking and publish a Discussion Paper later this year outlining our policy thinking on cryptocurrencies.”
The United Kingdom has already started to Regulate Cryptocurrencies
In a recent mandate, the FCA started to require cryptocurrency firms that offer the tokens and its derivatives to comply with applicable rules. The FCA said that it would be a “criminal offence” if these firms do not comply.
The UK’s Treasury Select Committee, which is a group of parliament ministers, launched an inquiry into cryptocurrencies. The inquiry began back in February of this year. This inquiry is an attempt to understand these digital tokens.
According to an article published in ICO Examiner News, the committee will look into the threats and risks cryptocurrencies face.