On March 24, the UK Financial Conduct Authority (FCA) issued a Notice reminding regulated entities of their regulatory obligations when they are interacting with or exposed to cryptoassets and related services.

Some of risks that firms must take into account are as follows:

• Avoid providing misleading information that would confuse consumers by providing them with clear information about which activities are regulated vs. those that are not regulated.

• Comply with AML regulation and the registration requirement in order to carry out this activity

• Implement appropriate systems and controls in place.

• Adequately assess the risks posed by a customer whose wealth or funds derive from the sale of cryptoassets, or other cryptoasset related activities.

• Assess and mitigate the potential for harm to clients.

• Ensure adequate protection for clients’ assets.