The United Kingdom will soon add its name to the list of world jurisdictions that have provided regulation for cryptocurrencies according to reports from the Financial Times.
The region's Financial Conduct Authority stated this in response to a call for regulation made by the Treasury in September. The Treasury had accused both the FCA and the government of only taking “feeble” measures in managing a “wild” industry.
So in response to those accusations, the FCA has promised to hold further consultations on the regulation of crypto-assets on early next year.
FCA's Chief Executive, Andrew Bailey affirmed that there is a need for new regulations or an amendment of existing ones because "crypto-assets are a good example of an activity for which the regulatory perimeter was not specifically designed at the time it was put into effect.”
To assess the existing parameters, the Chief official said they would begin by classifying the different types of digital assets in circulation.
Security Tokens Already Fall Under Securities Law
The Financial Conduct Authority will have their workload cut short based on the fact that some crypto assets currently in use could come under existing parameters.
The Treasury's economic secretary, John Glen, for instance, mentioned that security tokens which are used by startups and companies to raise capital or distribute shares could fit as “specified investment.”
With this classification, security tokens in the UK will be regulated under the Financial Services and Markets Act 2000.
Glen also promised that depending on the outcome of the consultation next year the government will do their best “to legislate (or) expand the regulatory perimeter to ensure that FCA regulation can be applied to all crypto-assets that have comparable features to security tokens, regardless of the way they are structured."
The issue of regulating cryptocurrencies and which ones should be a ‘security’ is also ongoing in the U.S. Congressman Warren Davidson, and Darren Soto recently released the Token Taxonomy Act to resolve the issue.