Shearman & Sterling LLP | FinTech Insights | FCA Clarifies Its Position on Virtual Currency Derivatives 
FinTech Insights
This links to the home page
Insights
FILTERS
  • FCA Clarifies Its Position on Virtual Currency Derivatives 
    04/06/2018
    On April 6, 2018 the U.K. Financial Conduct Authority (FCA) issued a statement clarifying its position on virtual currencies and virtual currency derivatives. The FCA stated that virtual currencies are not currently under FCA jurisdiction provided they are not part of other products or services regulated by the FCA. However, virtual currency derivatives may be deemed financial instruments under the Markets in Financial Instruments Directive II (MiFID II). The FCA warned that any firms dealing in, arranging transactions in or advising on or providing services relating to cryptocurrency derivatives, including futures, contracts for difference and options, must comply with all applicable rules in the FCA’s Handbook and any relevant provisions in directly applicable EU regulations.