A consultation by the Financial Conduct Authority (FCA)  on its proposed  guidance for how the regulator will police the crypto asset sector closes next month. It comes ahead of new legislation extending the scope of the FCA’s regulatory remit in respect of certain crypto asset business activities.

The FCA’s guidance is aimed at businesses operating in the sector – from cryptoasset firms, including those overseas which provide services to UK consumers, and stablecoin issuers, to traditional financial services firms extending their activities to cryptoassets, intermediaries and service providers in the field – ahead of the perimeter of regulation being widened.

David Heffron, a financial services regulation expert with…