Regulated activities are financial services or operations that are subject to specific legal oversight and authorization. These typically include activities such as advising on investments, operating an exchange, managing funds, or issuing certain financial instruments. Entities performing these functions must comply with licensing requirements, capital adequacy rules, and conduct standards set by supervisory authorities. In the digital asset sector, determining which crypto-related operations fall under existing regulations is a continuous process.
Context
The classification of digital asset operations as regulated activities is a central and evolving challenge for jurisdictions worldwide. Debates concern whether existing financial laws adequately cover crypto exchanges, stablecoin issuers, and decentralized finance (DeFi) protocols. Future policy efforts will likely clarify the scope of regulated activities within the digital asset market, potentially introducing new categories of licenses and specific supervisory regimes for crypto businesses.
The UK's new Draft Order mandates full FSMA compliance, compelling CASPs to immediately align operational and capital structures with traditional finance standards.
The FCA's consultation integrates digital asset service providers into the full regulatory perimeter, mandating alignment with Principles of Business and Consumer Duty standards.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
