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**BREAKING**
Guidance on #Cryptoassets
Feedback and Final Guidance to CP 19/3

July 2019:

Can cryptoassets be used to facilitate regulated payments
services? (Page 39)
Tokens can be used to facilitate regulated payment services such as international money remittance, and we have seen several use cases in the sandbox where unregulated tokens have been used like this to make things cheaper and faster on a small scale.
What this looks like in practice
• Sandbox case study 1. Unregulated tokens can be used to facilitate cross-border payments which are regulated by the FCA such as money remittance services
and this business model has been tested in our regulatory sandbox.
In one test,a firm received fiat funds(e.g. GBP)from a payer to transfer to a payee in a different jurisdiction and in another fiat currency. After receiving the fiat funds from the payer, the firm converted them to a cryptoasset which was then converted to the (cont...)
target fiat currency (e.g. ZAR). The payee received a pay out in fiat currency. Neither payer nor payee took any direct exposure to cryptoassets; the cryptoasset was
only used as an intermediary with the aim to make fiat cross-border transfers faster and cheaper.
The firm was registered as a Small Payments Institution (money remittance). As part of the parameters of their test, the firm was restricted to 25 retail clients.
The firm held cash reserves to cover the full amount of any retail transfer.
The test with retail customers was limited to £5000 per transaction and a maximum of 1000 transactions.
***Exchange tokens***
Exchange tokens are used in a way similar to traditional fiat currency. However, while exchange tokens can be used as a means of exchange, they are not currently recognised as legal tender in the UK, and they are not considered to be a currency or money.
Annex 1
List of non-confidential respondents

@Ripple
@inside_r3
I will not claim to have any expertise on this matter, but it looks very much like #XRP is an exchange token and #xRapid will not be classified as a regulated activity!

Do chime in if you have more insights on this.
Annex 1
List of non-confidential respondents

@Bitstamp
@cex_io

That explains the near synchronized addition of $GBP on ramps :)
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