The United Kingdom's Financial Markets Authority (FCA) has in its new policy on cryptographic assets the supervision of Bitcoin (BTC) and Ether (ETH).
As of today, July 31, the FCA has issued an official document entitled "PS19 / 22: Guidelines on the Assets of Kryto", in which the Authority regulates the future treatment of its crypto-currencies. The document was published in a draft as early as January 2019 and is expected to bring greater legal clarity to the United Kingdom regarding the cryptography sector.
The FCA calls crypto-currencies according to the concept of Bitcoin and Ether "payment tokens" whose main function is "to serve as a means of payment." Similarly, these tokens would be decentralized and would not belong to a central organization (such as a company). The Authority concludes that she is not responsible for monitoring this type of cryptocurrency.
Securities tokens and electronic money are the responsibility
However, the FCA defines in this document two other forms of crypto-currencies, called "utility tokens" and "securities tokens" respectively. In some cases, these would fall under the jurisdiction of the authority.
Because "security tokens" are more or less the numerical representation of a security to which the usual rights and obligations of the holders are associated, they are, like the shares and similar financial products, subject to the control of the FCA. On the other hand, the "use tokens" are subject to the control of the authority only if they can be classified in the electronic money in the respective case.
In this context, the FCA also notes that stable coins may also be the responsibility of the Authority, but only if they meet the definitions of electronic money or value tokens.
Earlier this month, Cointelegraph announced that the FCA appeared to plan the ban on trading in cryptographic derivatives (such as Bitcoin futures).