The Financial Conduct Authority has warned that companies which offer cryptocurrency trading need to be regulated or could face enforcement action.
In a statement on its website, the FCA specifically identified three types of contracts it sees as coming under its oversight: cryptocurrency futures, cryptocurrency contracts for differences, and cryptocurrency options.
The FCA at present has very little authority with regards to cryptocurrencies.
“We are aware of a growing number of UK firms offering so-called cryptocurrencies and cryptocurrency-related assets. As indicated in our Feedback Statement on DLT, cryptocurrencies are not currently regulated by the FCA provided they are not part of other regulated products or service," the statement reads.
In line with the Bank of England and a government cryptocurrency task force, further research is being carried out on what cryptocurrency means for the UK to take further action regarding cryptocurrency.
However, FCA statement has stirred concerns among crypto users and made them compare the UK to India, which recently banned financial firms from dealing with cryptocurrency.
By Jade Olafson