The UK’s financial regulators – the Financial Conduct Authority (FCA), Bank of England and the Prudential Regulation Authority (PRA) have issues new documents about cryptoassets.
In Brief:
All three organisations released documents, referencing each other, on Thursday last week.
They include warnings to financial institutions of their responsibilities in the area.
The FCA reminded firms of existing obligations and emphasised being “clear with customers”.
What does this mean?
The papers have taken into account the risk cryptoassets can pose to the wider financial services system, with the Bank of England noting that direct risks are currently limited but cryptoassets are becoming more connected to the entire system and could have a greater impact going forward. Firms of all kinds – banks, insurance companies and investment firms – were advised to ensure they’re up to date with existing regulation and warned that changes could be imminent.
