The Financial Conduct Authority (FCA) considered whether different forms of crypto-assets fall within its regulatory scope. This is assessed on a case by case basis. It also identified the benefits and potential risks related to crypto-assets and discussed the impact of DLT on financial institutions in the future. The FCA calls for a regulatory response to digital currencies that is balanced to provide adequate protection for consumers and businesses without stifling innovation. The Bank of England (BoE) argued that crypto-assets are unlikely to replace commonly used payment systems. It also confirmed that it does not view crypto-assets as a material threat to financial stability. It will continue to monitor developments in this space. It also shared its views on DLT and potentially releasing its own digital currency (CBDC) in future.
