The UK FCA Consults on Cryptoasset Regulations, Publishes New Crypto Guidance

The Financial Conduct Authority (FCA), an autonomous financial watchdog in the U.K, has started consulting on guidance related to virtual currencies, as per official release.

The financial regulatory body plans to provide companies with significant clarity and understanding associated with crypto operations to guarantee that these entities abide by regulations and protect users. The consultation is a reaction to several requests originating from both the financial industry and HM Treasury’s Crypto Taskforce seeking more guidance.

Even though the FCA claims that the number of digital currency investors is “relatively” low,  it thinks it needs to handle the damage from cryptocurrencies and promote innovation in the interest of users.   

The FCA’s director of strategy & competition, Christopher Woolard, revealed:   

"This is a small but growing market and we want both industry and consumers to be clear what is regulated, and what isn't."   

He added that this is important if users are to understand what protections they will profit from and for having a properly functioning market.