Regulation of crypto-ventures and crypto-tokens remains a murky area, with differing regulatory approaches globally and a shifting landscape that makes doing business more complex and increases the risks that market participants face. This note aims to clarify the current state of crypto regulation in the United Kingdom to help those seeking to establish new cryptoventures or transact in crypto-tokens comply with the law and avoid any regulatory pitfalls.
1. UNDERSTANDING THE LANDSCAPE TYPES OF CRYPTO-TOKENS AND CRYPTO-VENTURES, AND ARE THEY REGULATED?
Fortunately for crypto-market participants, UK legislators and regulators have recognised the benefits of clear rules to promote the growth of the market, encourage innovation and ensure best outcomes for customers. The Financial Conduct Authority (FCA) remains the main regulator for crypto-ventures and crypto-tokens in the United Kingdom. To come under the FCA s regulatory perimeter under the Regulated Activities Order (RAO), a cryp