Regulation 17 Interpretation: market abuse in qualifying cryptoassets and related instruments

In this Chapter—

• “authorised cryptoasset person” means a person who has a Part 4A permission for a regulated activity specified by Chapter 2B (cryptoassets) of Part 2 (specified activities) of the Regulated Activities Order^f1;

• “financial instrument” has the meaning given by article 3(1) (interpretation) of the Regulated Activities Order^f2;

• “inside information” has the meaning given by regulation 18 (inside information);

• “insider dealing” means using inside information as prohibited by regulation 22 (prohibited use of inside information (insider dealing));

• “issuing qualifying stablecoin” has the meaning given by regulation 4 (“issuing qualifying stablecoin” and the “issuer” of that qualifying stablecoin), and related expressions, including the “issuer” of that qualifying stablecoin, are to be read accordingly;

• “legitimate cryptoasset market practice” means a market practice specified as such in designated activity rules made by the FCA by virtue of regulation 34 (legitimate cryptoasset market practice);

• “market abuse” means any activity prohibited by—

  1. (a)

     regulation 22 (prohibited use of inside information (insider dealing));

  2. (b)

     regulation 24 (prohibition on the disclosure of inside information);

  3. (c)

     regulation 28 (prohibition of market manipulation);

• “market manipulation” has the meaning given by regulation 19 (market manipulation);

• “operator of a qualifying cryptoasset trading platform” means a person who has a Part 4A permission for the regulated activity specified by article 9S (operating a qualifying cryptoasset trading platform) of the Regulated Activities Order in respect of that platform;

• “person responsible for the offer”, in relation to a qualifying cryptoasset, has the meaning given by regulation 3(3) (interpretation: qualifying cryptoasset public offers and admissions to trading);

• “related instrument” means a financial instrument or specified investment whose price or value depends on, or has an effect on, the price or value of a relevant qualifying cryptoasset, but does not include a financial instrument or specified investment which—

  1. (a)

     is a relevant qualifying cryptoasset, or

  2. (b)

     falls within Article 2(1) of the market abuse regulation (scope)^f3;

• “relevant dealer in principal”, in relation to a relevant qualifying cryptoasset, means a person who carries on an activity of a kind described in article 9T of the Regulated Activities Order (dealing in qualifying cryptoassets as principal)^f4 in relation to that cryptoasset;

• “relevant issuer” means—

  1. (a)

     in relation to a relevant qualifying cryptoasset—

     1. (i)

        the issuer of a qualifying stablecoin, or

     2. (ii)

        in any other case, a person (“A”) where—

        1. (aa)

           A offers a qualifying cryptoasset, or arranges for another to offer that qualifying cryptoasset to the public, and

        2. (bb)

           that qualifying cryptoasset is created by, or on behalf of, A for sale or subscription;

  2. (b)

     in relation to a related instrument, the issuer of that instrument;

• “relevant qualifying cryptoasset” means a qualifying cryptoasset that has been admitted to trading, or is subject to an application seeking admission to trading, on a qualifying cryptoasset trading platform operated by a person with a Part 4A permission for the activity specified by article 9S of the Regulated Activities Order (operating a qualifying cryptoasset trading platform) in relation to that platform;

• “specified investment” means an investment of a kind specified by Part 3 of the Regulated Activities Order (specified investments).

For the purposes of this Chapter, issuing, and any related expression, does not include the minting of a relevant qualifying cryptoasset, such that it first exists as—

For the purposes of this Chapter, making a recommendation includes providing an inducement forming part of or related to that recommendation.

For the purposes of this Chapter, a “relevant person”, in relation to a relevant qualifying cryptoasset or a related instrument, means—

For the purposes of this Chapter, the person responsible for the offer of a related instrument is the person who is for the purposes of the market abuse regulation the offeror of that instrument.