In the UK, they concluded that Bitcoin (BTC) and Ethereum (ETH) cryptocurrencies do not require regulation, while utility tokens and some staylcoins need a set of rules.
The British Financial Conduct Authority (FCA) has published a final guide for those who deal with cryptocurrencies . In it, all digital assets are divided into two groups. The first group includes only Bitcoins and Ethereum, which are defined as “digital tools for transactions with goods and services”.
It is emphasized:
"These cryptocurrencies are decentralized , and their functionality as a means of payment is advantageous in their nature."
On this basis, analysts of the regulator note that these cryptocurrencies should not be regulated by FCA, but they should be subject to customary law that applies to monetary settlements in the economy.
Thus, the most influential financial regulator in the UK ruled that Bitcoins and Ethereum legally perform the same function as the British pound sterling. A transaction for the sale of goods and services, whether they are mediated by Fiat or digital assets, only then require close attention when they violate any existing legislation, for example, to prevent the laundering of funds.
At the same time, both Fiat and digital assets are perceived as a tool that in this case was used for illegal operations. However, this does not lead to the fact that there may be a requirement to ban the British pound sterling or Bitcoins with Ethereum.
The second group of digital assets is all other than Bitcoins and Ethereum, cryptocurrencies. In accordance with the published guidelines, FCA intends to administer their appeal. That is, users of such assets for commercial purposes should contact the British regulator for clarification of the legal scope of circulation of such digital assets.
Clarification on cryptocurrencies came at a time when the new British Prime Minister, Boris Johnson, intends to intensify work on the release of Misty Albion from the European Union, and this, as suggested by the FCA, will lead to an increase in demand for cryptocurrency from the British.
Publication date 08/02/2019
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