The Financial Conduct Authority (FCA) has issued a reminder to firms offering cryptocurrencies or cryptocurrency-related assets of the importance of determining whether the services they are providing require authorisation by the FCA.
Although cryptocurrencies on their own are not currently within the FCA’s regulatory remit, cryptocurrency derivatives can be. The FCA has therefore warned firms taking part in regulated activities involving these derivatives that they need to comply with not only FCA rules but also any directly applicable regulations from the European Union.
According to the FCA, the types of contracts likely to require authorisation include cryptocurrency futures, cryptocurrency contracts for differences and cryptocurrency options.
Firms that offer FCA regulated products and services without obtaining the necessary authorisation are committing a criminal offence and can be subject to enforcement action.
Any firms that are unsure whether the products and services they offer require FCA authorisation are therefore advised to seek professional advice immediately.
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