This post was written by Niall Mackle
The UK Government has launched a consultation regarding cryptoassets, focussing on whether unregulated cryptoassets should fall within the financial promotions regime.
As many will know, cryptoassets known as "security tokens" currently do fall within the regulatory perimeter of financial promotions, meaning that only FCA authorised persons may communicate invitations or inducements to engage in investing activity, as with other securities.
The main crux of the government's proposal is to add certain unregulated cryptoassets to the list of controlled investments in order to protect consumers, provide market integrity and combat financial crime.
Separately, the government is also consulting on proposals to strengthen the FCA's ability to ensure the approval of financial promotions of unauthorised firms operates effectively. This consultation can be found here. The consultations should be read together.
As a leading global financial centre, the UK is committed to fostering innovation, whilst maintaining the high standards of consumer protection, market integrity, and regulatory supervision for which its financial system is known.