FCA Publishes Statement on Cryptocurrency Derivatives

May 23, 2018
Cryptocurrency and Blockchain Tracker

The UK Financial Conduct Authority (FCA) recently published a statement on the requirement for firms offering cryptocurrency derivatives to be authorised.

The FCA reiterated that cryptocurrencies themselves are not currently regulated by them, provided that they are not part of other regulated products or services. However, the FCA confirmed that cryptocurrency derivatives (examples provided in the FCA statement being cryptocurrency futures, cryptocurrency contracts for differences (CFDs) and cryptocurrency options) are capable of comprising “financial instruments” for the purposes of the Markets in Financial Instruments Directive (MiFID II). The statement clarifies that the FCA does not consider cryptocurrencies to be currencies or commodities for MiFID II purposes.

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