The UK Financial Conduct Authority (FCA) has published a position paper outlining its planned approach to regulating digital assets in the near future to which responses may be sent to the agency.
The FCA categorizes digital assets into three categories: exchange tokens, security tokens and utility tokens. At the moment, the FCA considers that only security tokens fall under the scope of its regulatory mandate. Those dealing in security tokens in the UK should be authorized or exempt from authorization.
The FCA provides a non-exhaustive list of criteria to decide whether an instrument qualifies as a security token, including whether it purports to give its holders contractual rights, whether it entitles them to a share of profit or revenue, whether it is explicitly recognized as an investment and whether it gives some sort of voting rights.
FCA also noted that in the future new regulations may broaden the scope of its oversight with respect to digital assets.