Business 12 months ago

Ed Drake

UK financial regulator steps up scrutiny of ICOs

The chief financial regulator in the UK is stepping up its scrutiny of ICOs, as it considers whether further legislative measures may be required.

The Financial Conduct Authority (FCA), the body responsible for market oversight in the UK, announced it was conducting further research into the extent to which ICOs are covered by current financial regulations, and whether further measures could be introduced to regulate the funding model.

The announcement, as part of a feedback statement released last week, goes further than the warnings already issued by the regulator back in September, designed to highlight the risks of investing in ICOs.

In September, the regulator cautioned against the unregulated nature of many ICOs, and warned retail investors in particular that ICOs were “very high-risk, speculative investments,” without the same investor protections as other asset classes.

The latest feedback statement said the Financial Conduct Authority would now engage in a more in-depth examination of developments since its earlier research papers, to inform the regulator on the latest regulatory risks associated with initial coin offerings and help shape policy on ICOs for future.

Pending the outcome of the report, the next step could see draft proposals drawn up to regulate ICOs, or firmer guidance on how existing securities laws apply in the ICO use case.

Price volatility and fraud risk were also among the specifically highlighted risks associated with investing in ICOs, with the regulator calling on ICOs promoters to conduct their offerings for ‘consumer benefit’.

The development comes at a time of increasing scrutiny for ICOs worldwide, as financial regulators rush to identify the right regulatory response amid a surge in activity.

ICOs have enjoyed exponential growth in 2017, raising as much as £2.3 billion from the sale of tokens and Simple Agreements for Future Tokens (SAFTs).

Regulators across the world have urged caution, with some going further—most notably in China, where an outright ban on ICOs marked the most decisive global response thus far.

While there are no suggestions the FCA could move to ban ICOs in the UK, their findings may point to the need for further regulation to tighten up the rules for initial coin offerings.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Satoshi Vision (BSV) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BSV is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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Crypto regulations coming to UK by 2020 – CRYPTOTIMES.MOBI

[…] management of digital assets, initially for traders, investment fund managers,s and companies with initial coin offerings […]

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Crypto regulations coming to UK by 2020 | Bitcoin price media

[…] management of digital assets, initially for traders, investment fund managers,s and companies with initial coin offerings […]

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Gemini exchange looks to expand into the UK – CRYPTOTIMES.MOBI

[…] The timing may be perfect for Gemini. Last week, parliamentary members began to put pressure on the FCA to bring the crypto industry out of the “Wild West” environment in which it currently lives. While the FCA does not provide the framework for cryptocurrency regulation, except for a few crypto derivative products, its position as the financial watchdog gives it the ability to implement crypto guidelines. The move, argues the lawmakers, will help the UK to be seen as a global hub for the entire crypto industry. […]

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Gemini exchange looks to expand into the UK | Bitcoin price media

[…] The timing may be perfect for Gemini. Last week, parliamentary members began to put pressure on the FCA to bring the crypto industry out of the “Wild West” environment in which it currently lives. While the FCA does not provide the framework for cryptocurrency regulation, except for a few crypto derivative products, its position as the financial watchdog gives it the ability to implement crypto guidelines. The move, argues the lawmakers, will help the UK to be seen as a global hub for the entire crypto industry. […]

Your comment is awaiting moderation.

Financial watchdog confirms crypto derivatives’ regulatory status in UK – CRYPTOTIMES.MOBI

[…] in relation to derivatives that reference either cryptocurrencies or tokens issued through an initial coin offering (ICO), will require authorisation by the […]

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UK issues guidelines for cryptocurrency derivatives – Cryptochats

[…] are still not legally considered currency or commodities, but that the digital currency, as well as initial coin offerings (ICO) are financial instruments that fall under its regulatory domain. The agency’s […]

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UK issues guidelines for cryptocurrency derivatives | Coin Crypto Rama

[…] are still not legally considered currency or commodities, but that the digital currency, as well as initial coin offerings (ICO) are financial instruments that fall under its regulatory domain. The agency’s position mirrors […]

Your comment is awaiting moderation.

UK issues guidelines for cryptocurrency derivatives – CRYPTOTIMES.MOBI

[…] are still not legally considered currency or commodities, but that the digital currency, as well as initial coin offerings (ICO) are financial instruments that fall under its regulatory domain. The agency’s position […]

Your comment is awaiting moderation.

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