# The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, Article 9N: Safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets


(1) The following are specified kinds of activity—
(a) the safeguarding of a qualifying cryptoasset or a relevant specified investment cryptoasset (“the cryptoasset”) on behalf of another person (“A”);
(b) arranging for a person to carry on that activity.
(2) For the purposes of paragraph (1)(a)—
(a) a person (“C”) is to be regarded as safeguarding the cryptoasset if C has control of the cryptoasset through any means that would enable C to bring about a transfer of the benefit of the cryptoasset to another person, including C;
(b) “on behalf of another” includes where that other person, A, has—
(i) both legal and beneficial title to the cryptoasset;
(ii) the beneficial title only to the cryptoasset;
(iii) subject to sub-paragraph (c), a right against C for the return of the cryptoasset;
(c) subject to sub-paragraph (d), sub-paragraph (b)(iii) does not apply where A’s right against C for the cryptoasset arises in the following circumstances—
(i) C received the cryptoasset from A under a title transfer cryptoasset collateral arrangement, or
(ii) C acquired the cryptoasset from A under an agreement, pursuant to which A contracted to buy back the cryptoasset from C;
(d) sub-paragraph (c) does not apply where A is—
(i) a consumer, or
(ii) specified, or of a description specified, in rules made by the FCA.
(3) Rules made by virtue of paragraph (2)(d)(ii) may—
(a) specify a particular person or class of persons;
(b) be limited so as to apply only to agreements or arrangements, or classes of agreements or arrangements, specified by the rules.
(4) For the purposes of paragraph (2)(a), the means by which C may have control of the cryptoasset include—
(a) holding or storing of the means of access, or part of the means of access, to the cryptoasset;
(b) appointing a person to hold or store the means of access, or part of the means of access, to the cryptoasset under an arrangement operated by C.
(5) For the purposes of this article—
(a) “consumer” means an individual who is acting for a purpose other than for any trade, business or profession carried on by that individual;
(b) “relevant specified investment cryptoasset” means a specified investment cryptoasset that is a—
(i) security, or
(ii) contractually based investment;
(c) “title transfer cryptoasset collateral arrangement” means an agreement or arrangement between C and the person who would otherwise be regarded as safeguarding the cryptoasset on behalf of another person (“A”), where—
(i) the purpose of the agreement or arrangement with A is to secure or otherwise guarantee financial obligations owed by A to C, and
(ii) A transfers legal and beneficial ownership of the cryptoasset to C on terms that C must transfer legal and beneficial ownership of the cryptoasset or its equivalent to A when the financial obligations referred to in paragraph (i) are discharged;
(d) references to the cryptoasset, a qualifying cryptoasset or a relevant specified investment cryptoasset include the means of access to that cryptoasset;
(e) references to the “means of access” to a cryptoasset include a private cryptographic key to that cryptoasset.

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Source: https://www.legislation.gov.uk/uksi/2001/544/article/9N (the official version)
Page: https://openlegislation.uk/financial-services-and-markets-act-2000-regulated-activities-order-2001/article-9N
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.