Abstract

An overview of the United Kingdom regulatory framework for cryptoassets, including current legislative position and expected changes in the near future. Currently, the key determinants of whether cryptoasset activity are twofold. Firstly, the features of a cryptoasset will determine whether it fits within the definition of being a specified investment for the pruposes of the traditional regulatory regime. Cryptoassets which, for example, function like securities would fall within this regime, and so certain specified activities in relation to such would require a licence from a UK regulator. Secondly the acts of exchanging, making arrangement with a view to the exchange of, and safekeeping cryptoassets require registration with a UK regulator if performed from an establishment in the UK. Recently, a regime requiring approval of financial promotions of fungible transferrable cryptoassets has come into force, and there will also likely be further new regimes in the future, for example in connection with stablecoins used for payment services.