Cryptocurrency regulation: The FCA will publish its cryptocurrency review later this year

The UK’s markets watchdog is set to publish its review of cryptocurrencies in the third quarter this year after issuing a number of warnings on the controversial digital assets.

In its business plan for the financial year ahead, the Financial Conduct Authority (FCA) said the review was part of a taskforce with the Treasury and Bank of England.

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The FCA said cryptocurrencies like bitcoin have been “an area of increasing interest for markets and regulators globally”.

“In the UK, the Treasury Committee has announced that it will be launching an enquiry, to which we intend to respond.”

The watchdog noted that cryptocurrencies themselves do not fall within its regulatory remit, but “some models of use or packaging cryptocurrencies bring them within our perimeter, making the landscape complex”.

The FCA yesterday warned that firms offering services linked to cryptocurrency derivatives must meet the regulator’s rules or else face sanctions, and previously it has warned consumers against the danger of initial coin offerings and crypto contracts for difference.

“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,” it said.

Read more: FCA: Firms offering crypto derivatives need the regulator’s approval