The Financial Conduct Authority on Wednesday released guidelines for the Finance Ministry in the UK on how to regulate cryptocurrencies. Reportedly, the Ministry welcomed the guidance and was planning to consult on ‘unregulated cryptocurrencies’ later this year.
This was a monumental event in the UK’s Financial System as they attempted at a classification of different types of cryptocurrencies – ‘Token Taxonomy.’ The Authorities broadly viewed three kinds of crypto-assets: cryptocurrencies as a medium of Exchange, utility tokens and security tokens.
Stablecoins and Security Tokens to Be Formalized Soon?
They recognized ‘stablecoins’ backed by FIAT, as crypto which could be regulated as e-money. The guidelines added,
Respondents agreed that certain types of tokens can meet the definition of e-money and so fall under the EMRs
Nevertheless, these are some types of stablecoins like ones backed by a commodity or a basket of currencies and commodities. While Facebook’s
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