FCA issues guidance on security tokens

The U.K's Financial Conduct Authority has issued its final guidance policy on security tokens, which also covers all cryptoassets.  The paper provides clarity on the types of assets that fall within the FCA’s regulatory remit and the resulting obligations on firms and regulatory protections for consumers.

In the paper, the FCA affirms that security tokens fall within the FCA regulatory perimeter and any firms carrying on specified activities involving security tokens will need to ensure that they are compliant and have the correct permissions.

"In broad terms, we described security tokens as those tokens that provide rights and obligations akin to specified investments as set out in the RAO, including those that are financial instruments under MiFID II.  For example, these tokens have characteristics which mean they are the same as or akin to traditional instruments like shares, debentures or units in a collective investment scheme."


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