FCA UK: cryptocurrencies Bitcoin and Ethereum do not need regulation
In the UK, it was concluded that Bitcoin (BTC) and Ethereum (ETH) cryptocurrencies do not require regulation, while utility tokens and some stablecoins need a set of rules.
The British Financial Conduct Authority (FCA) has published the final version of the guide for those dealing with cryptocurrencies. In it, all digital assets are divided into two groups. The first group included only bitcoins and Ethereum, which are defined as “digital tools for conducting transactions with goods and services”.
It is emphasized:
“These cryptocurrencies are decentralized, and their functionality as a means of payment is predominant in their nature.”
Based on this, regulator analysts note that these cryptocurrencies should not be regulated by the FCA, and the usual law that applies to monetary settlements in the economy should be applied to them.
Thus, the most influential financial regulator in the UK decided that Bitcoins and Ethereum legally perform the same function as the British pound. And transactions for the sale of goods and services, whether they are mediated by fiat or digital assets, only then require close attention when they violate any applicable laws, for example, to prevent money laundering.
At the same time, both fiat and digital assets are perceived as a tool, which in this case was used for illegal operations. However, this does not lead to the fact that there may be a requirement to ban the British pound sterling or bitcoins with Ethereum.
The second group of digital assets is all other than cryptocurrencies other than bitcoins and Ethereum. In accordance with the published guidelines, the FCA intends to administer their appeal. That is, users of such assets for commercial purposes should contact the UK regulator for clarification of the legal scope of circulation of such digital assets.
An explanation of cryptocurrencies appeared at a time when the new British Prime Minister, Boris Johnson, intends to intensify work on the exit of Foggy Albion from the European Union, and this, as suggested by the FCA, will increase the demand for cryptocurrencies from the British.
