Following the publication of its discussion paper regarding the risks and opportunities, and characteristics of distributed ledger technology (DLT) in April 2017, the FCA’s feedback statement FS17/4 sets out responses received and the FCA’s next steps.
The responses related to the following issues:
- operational risk, including outsourcing and network security;
- digital currency, including digital currency derivatives and initial coin offerings (ICO);
- digital asset trading and smart contracts;
- regulatory reporting;
- financial crime; and
- data protection.
Among the FCA’s next steps, it highlighted its intention to gather further evidence on the ICO market to consider whether there is need for further regulatory action, and to work collaboratively with international operators to support efforts to develop a globally harmonised approach to DLT.