Request for Input – Innovation and the Regulatory Perimeter

We asked for views and evidence regarding the implications of expanding the regulatory perimeter to include certain activities relating to crypto-assets.

We received nine responses. All respondents generally agreed that some crypto-asset businesses should be regulated. Each respondent draws the line of that potential regulatory perimeter in a different place, although in general there was some consensus that crypto-asset exchanges should be subject to some form of regulation.

The main comments received, and the Authority’s views on those comments can be found in the consultation response document attached.

There are a number of substantially different regulatory regimes currently under development around the world and all are facing practical hurdles for which there is not yet a clear solution. This means that the time is not right to make firm decisions on the introduction of any regulation.

The Authority will continue, however, to maintain a watching brief on how this sector, and the international regulatory frameworks, develop and mature. Any proposed updates to the regulatory perimeter will be subject to full consultation before introduction.