The Financial Conduct Authority (FCA) is introducing new rules to bring various forms of cryptoassets within its regulatory remit. To ensure that cryptoassets are comprehensively regulated, the FCA has engaged with stakeholders and published a new webpage to update stakeholders on the development of the regime.

The FCA’s discussions with stakeholders involved not only key industry players (such as crypto exchanges and blockchain analytics companies), but other UK regulatory authorities and the US Securities and Exchange Commission. In a blog post (available here), the FCA’s Director of Payments and Digital Assets, Matthew Long, explained the key takeaways:

• Rules for cryptoasset providers making admissions and disclosures to investors – Described by Long as a “crucial aspect” of the crypto regime, stakeholders welcomed the idea of proportionate, industry-led disclosure rules which are adjustable to different business models, although disclosure for decentralised crypto assets may be more difficult or even impossible.
• New market abuse regime – The FCA will need to address the "novel and distinct ways" in which market abuse can occur in crypto markets. Stakeholders suggested that it may be difficult to share market abuse information across different jurisdictions due to differing data privacy laws, and some stakeholders disagreed over whether traditional finance disclosure rules should apply to disclosure for decentralised crypto assets.
• Trading platforms and intermediaries – These will need “strong systems and controls” that account for the “unique characteristics of crypto” to ensure that trading of cryptoassets can remain fair and transparent. Stakeholders generally supported the FCA’s proposals, but raised a number of points to be aware of, including the risk of a conflict of interest when a crypto exchange issues its own tokens for trading.

The FCA’s new cryptoassets webpage provides information and guidance to help stakeholders remain aware of their obligations, which may develop or increase over the coming years. The webpage includes, among other points:

• A list of the cryptoasset firms that are currently registered with the FCA
• A timeline for the FCA’s plans to introduce cryptoasset regulation over the next few years
• Guidance on how to register with the FCA
• Clarification on what kinds of cryptoasset will be regulated
• Information on the FCA's financial promotions regime for cryptoassets

As some rules already apply (such as money laundering regulations), firms dealing in cryptoassets can use this webpage to understand what obligations they will need to comply with now. Additionally, as the FCA is set to introduce more rules over the next few years, the website provides updates on the progress of upcoming regulation, such as the new proposed regime for fiat-backed stablecoins.