UK’s top financial watchdog, the Financial Conduct Authority (FCA) said that there is no need for regulation of Bitcoin and Ethereum. In its statement issued in a document, “PS19/22: Guidance on Cryptoassets,” the FCA declared that Bitcoin and Ethereum are considered as “exchange tokens” and only used as a means of exchange. It also said that these cryptocurrencies will not be included within the regulatory jurisdiction of the FCA. The FCA also expressed that the stable coins and utility coins can be regulated if needed.
The FCA is working to crack-down on unlicensed crypto-investment schemes and scam projects. In its released statement, FCA said that security tokens are similar to shares and debt instruments, which makes them suitable for regulation. One of the biggest Finance Watchdogs of the world said that a token which is not a security token or an e-money token will remain unregulated. Regarding stable coins, it said that only some of the stable coins can be regulated as not every stable coin falls in the category of e-money.
The motive of Finance watchdogs is to keep a track of financial activities and such services offer debt relief to people suffering from the debt crisis. These units run debt consolidation programs on a global level and help to meet the borrowing needs of people.
FCA’s documented proposal received a positive response from the public. With the help of this document, it has become possible to clearly classify the digital assets into existing categories. Christopher Woolard, FCA executive director of Strategy and Compensation said that the categorization will help to effectively carry out crypto-asset activities in the complex market.
