The financial conduct authority UK (FCA) announced the intention to form its policy toward digital currencies before the end of the year. The financial regulator has introduced such a clause in the business plan for 2018-2019. Six months ago, he published a warning that the company offering cryptocurrency derivatives, not empowered.
Although there are a significant number of British companies specializing in cryptocurrency offers, the regulatory framework FCA operates only cryptocurrency derivatives such as futures, contracts for difference and options.
This means that currently, the FCA can only regulate those companies whose activity is connected with the aforementioned financial instruments or selling tokens that their properties are similar to securities. Thus, the Agency needs to fill a white spot in the local regulation of digital currencies.
The cryptocurrency, which was originally created as a means of payment or exchange that is not currently part of our area of responsibility. However, some usage patterns indicate that they should be under our control. At the end of this year a working group consisting of representatives of the Bank of England and Treasury should develop and publish materials for discussion, which will set out our policy towards cryptocurrency.
In September the parliamentary Committee on the Treasury launched a study on cryptocurrencies, in order to establish the role of digital assets in the UK, and to identify opportunities and risks that they pose to consumers, businesses and government.
The Committee should consider the impact of blockchain technology on financial institutions, Central Bank and financial infrastructure. It will also have to examine carefully the position of the regulators, the government, FCA and the Bank of England in respect of digital currencies. The ultimate challenge is to balance regulation, protecting consumers and business without compromising innovation.