Post by Digital South Trust

The UK Financial Conduct Authority has published its overview of the cryptoassets regime #policy statements, setting out the final rules and guidance for firms that will need to be authorised and regulated under the new framework. The regime covers key areas of the cryptoasset ecosystem, including: Cryptoasset trading platforms and intermediaries #Stablecoin issuers #Cryptoasset custodians Staking providers Lending and borrowing services Admissions and disclosures Market abuse controls Prudential requirements #DeFi, where there is an identifiable controlling entity For stablecoins, the FCA sets out rules on backing assets, safeguarding, redemption requirements and disclosures to holders. For cryptoasset custodians, the regime includes safeguarding requirements relating to ownership rights, record-keeping, reconciliation and private key management. For cryptoasset trading platforms and intermediaries, the policy covers trading, dealing, custody, best execution, disclosures and market abuse controls. For DeFi, the FCA states that rules and guidance will apply where there is an identifiable controlling entity, with further tailored DeFi guidance expected. The FCA also states that cryptoassets remain high-risk investments, and that consumers should be aware they could lose the entire value of their investment. UK-issued qualifying stablecoins are treated differently under the regime, with requirements for full backing and redemption at par. #FCA #CryptoAssets #CryptoRegulation #Stablecoins #DeFi #CryptoExchange #DigitalAssets #Blockchain #Web3 #FinTech #CryptoPolicy #MarketIntegrity #ConsumerProtection