The FCA has published final guidance which sets out the crypto-asset activities that it regulates. The Final Guidance is in response to the FCA’s consultation that was published in January 2019.
The FCA has stated that the guidance will help firms understand whether their crypto-asset activities fall under FCA regulation. This will allow firms to have a better understanding of whether they need to be authorised and what they need to do to ensure they are compliant.
The FCA has said that consumers need to be mindful of the absence of certain regulatory protections when considering purchasing unregulated crypto-assets. Unregulated crypto-assets (e.g. Bitcoin, etc.) are not covered by the Financial Services Compensation Scheme and consumers do not have recourse to the Financial Ombudsman Service.
Additionally, consumers should be cautious when investing in such crypto-assets and should ensure they understand and can bear the risks involved with assets that have no intrinsic value.