Definition ∞ The UK regulatory perimeter defines the scope and boundaries within which financial activities and entities are subject to regulation by authorities in the United Kingdom. For digital assets, this specifies which tokens, services, and firms fall under the purview of bodies like the Financial Conduct Authority. It delineates the extent of legal oversight.
Context ∞ The UK is actively working to clarify and expand its regulatory perimeter to address the evolving digital asset market. Key discussions involve whether specific cryptocurrencies or stablecoins should be classified as regulated financial instruments. This ongoing effort aims to provide legal certainty for businesses while protecting consumers and maintaining financial stability.
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