The FCA published feedback on its consultation on distributed ledger technology (DLT), revealing it is taking a technology-neutral approach to regulation and that it plans further scrutiny of initial coin offerings (ICOs).
The FCA said it will gather more evidence on ICOs and conduct a "deeper examination" into the rapid developments in this sector.
The findings should help determine whether further regulatory action is necessary beyond the consumer warning the FCA issued in September.
The feedback paper does not, however, mention how long this evidence-finding exercise will take or how it will be conducted.
Earlier this year, the FCA issued a discussion paper, seeking stakeholder views on the regulatory implications of current and potential for developments of DLT in the financial markets.
The regulator received 47 responses from a range of market participants, including regulated firms, national and international trade associations, technology providers, law firms and consultancies.
The FCA said respondents expressed "particular support" for it maintaining its 'technology-neutral' approach to regulation and welcomed the FCA’s approach to new technology, including its sandbox and RegTech initiatives.
The feedback also suggested that current FCA rules are flexible enough to accommodate the use of DLT by regulated firms, and no changes were proposed to specific rules.
Many respondents suggested the DLT could deliver regulatory requirements more efficiently than current systems, substantially reducing costs for firms and regulators.
The FCA therefore plans to continue to monitor DLT-related developments, and keep its rules and guidance under review in light of these developments.
Some respondents doubted the compatibility of permissionless networks (which allow general public visibility of transactions online and are open for broad participation, compared to permissioned networks which typically feature a ‘gatekeeper’ who controls access) with the FCA's regulatory regime.
However, the FCA stated that it is overall open to all forms of deployment, permissioned and permissionless, as long as the operation risks are properly identified and mitigated.
The regulator also plans to collaborate with industry and other regulatory authorities to ensure a co-ordinated approach towards DLT in the UK, as well as with national and international regulators to shape regulatory developments and standards.