The Financial Conduct Authority (FCA) has launched a consultation that aims to define the regulatory perimeter when it comes to cryptoassets, the U.K. regulator announced Wednesday.
It sets out the crypto-related activities that it will regulate in a new consultation paper.
The regulator’s consultation comes in response to requests from the industry seeking clarity on whether certain activities fall under its oversight, the FCA said in a release.
“This is a small but growing market and we want both industry and consumers to be clear what is regulated, and what isn’t. This is vital if consumers are to know what protections they’ll benefit from and in ensuring we have a market functioning as it should,” said Christopher Woolard, executive director of strategy and competition at the FCA.
The FCA it will launch another consultation later this year on a proposal to ban the sale of derivatives linked to certain types of cryptoassets to retail investors, the FCA said, including options, futures and CFDs based on cryptoassets such as exchange tokens.
The FCA is asking for comments on the consultation paper by April 5. It will publish final guidance on the regulatory perimeter by the summer 2019.