FCA Handbook - CRYPTO 10.2 Information requirement

You are viewing CRYPTO 10.2 Information requirement as it appeared on 25/10/2027. The current version of CRYPTO 10.2 Information requirement was last updated on 25/10/2027.

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CRYPTO 10.2 Information requirement

(1) A firm must provide a retail client with information about the firm and its qualifying cryptoasset staking service.
(2) The information in (1) must be provided to a retail client:
1. (a) each time that retail client instructs the firm to provide the qualifying cryptoasset staking service; and
2. (b) before one of the following, whichever is the earlier:
  1. (i) a retail client is bound by any agreement relating to qualifying cryptoasset staking; or
  2. (ii) the provision of those services.
(3) A firm must provide the information in (1) in a durable medium or via a website, mobile application or any other digital medium that the firm may be using in relation to the provision of its qualifying cryptoasset staking service (where it does not constitute a durable medium) where the website conditions are satisfied.

(1) Where a retail client has provided express prior consent for the firm to use any rewards earned in further qualifying cryptoasset staking, as opposed to rewards being transferred or allocated to the retail client immediately, the firm is not required to provide the information in CRYPTO 10.2.1R again in relation to the use of rewards in further qualifying cryptoasset staking.
(2) This is provided the use of any rewards in further qualifying cryptoasset staking is on terms that are the same as, or substantially similar to, the original qualifying cryptoasset staking service.
(3) A firm should nonetheless consider whether it would be in the best interests of the retail client for it to provide information about any further qualifying cryptoasset staking even where this is not required.

A firm must regularly – and at least once every 3 months – review the information provided under CRYPTO 10.2.1R(1). If necessary, the firm must update the information as soon as possible, to ensure it remains accurate and up to date.

A firm must notify a retail client in good time about any material change to the information provided under CRYPTO 10.2.1R(1) relevant to the qualifying cryptoasset staking service that the firm is providing to that retail client.

Content of the information

The information in CRYPTO 10.2.1R(1) must include:

(1) information about the qualifying cryptoasset staking service to be provided to the retail client;
(2) information about the qualifying cryptoassets that will be used in the qualifying cryptoasset staking service;
(3) information about the transfer and return of qualifying cryptoassets used in the qualifying cryptoasset staking service and any rewards earned;
(4) information about the retail client’s access to their qualifying cryptoassets and access to rewards earned;
(5) information about risks;
(6) any other information material to a retail client’s understanding of the qualifying cryptoasset staking service; and
(7) when the information was last updated.

Information about the qualifying cryptoasset staking service

Information about the qualifying cryptoasset staking service to be performed for the retail client should include:

(1) a description of the qualifying cryptoasset staking service, including whether the qualifying cryptoasset staking will be performed by the firm itself or by another person or persons; and
(2) where a qualifying cryptoasset staking service involves auto-staking, an explanation that the firm will use a retail client’s future holdings of one or more of the types of qualifying cryptoassets that the retail client has designated for that purpose in qualifying cryptoasset staking.

Information about the qualifying cryptoassets

(1) The information about the retail client’s qualifying cryptoassets to be used in the qualifying cryptoasset staking service should include, where applicable:
1. (a) that the retail client may receive a cryptoasset as part of the qualifying cryptoasset staking service;
2. (b) that there may be risks associated with any other cryptoasset provided as part of the qualifying cryptoasset staking service, such as the possibility of a change in value in comparison to the client’s underlying qualifying cryptoassets being used in the qualifying cryptoasset staking service;
3. (c) information on the functions and limitations of any other cryptoasset provided as part of the qualifying cryptoasset staking service, including whether it can be transferred, sold or used in any other qualifying cryptoasset staking service;
4. (d) the implications for the retail client of the transfer to another person of any cryptoasset provided to the retail client as part of the qualifying cryptoasset staking service; and
5. (e) information on how any other cryptoasset provided to the retail client may be returned to, or exchanged with, the firm or another person for the qualifying cryptoasset being used in the qualifying cryptoasset staking service, and any rewards earned (as applicable).
(2) A firm should provide further information, where appropriate, on the type, nature and uses of the relevant qualifying cryptoassets, and their blockchains, associated with the qualifying cryptoasset staking service provided. This could include providing links to QCDDs published in accordance with CRYPTO 3.
(3) In this chapter, including in (2), a reference to a ‘type’ of qualifying cryptoasset:
1. (a) refers to a qualifying cryptoasset on a specific network that uses distributed ledger technology (eg, blockchain); and
2. (b) may include reference to the digital token identifier, such as the Digital Token Identifier system outlined in ISO standard 24165.

Information about transfer and return

The information about the transfer and return of qualifying cryptoassets used in the qualifying cryptoasset staking service and any rewards earned should include, where applicable:

(1) information about any restrictions, including those not set by the firm itself, on the retail client’s ability to cease the qualifying cryptoasset staking service being performed for them, and to receive the return of their qualifying cryptoassets and any rewards earned, if applicable; and
(2) information about the amount of time required for qualifying cryptoassets used in the qualifying cryptoasset staking service and any rewards earned, if applicable, to be returned to the retail client, and whether and in what circumstances the amount of time is variable.

Information about a retail client’s access to their qualifying cryptoassets and rewards

The information about the retail client’s access to their qualifying cryptoassets and/or access to any rewards earned should include, where applicable:

(1) what access the retail client will have to their qualifying cryptoassets while those qualifying cryptoassets are being used in the qualifying cryptoasset staking service, including whether the qualifying cryptoassets can be transferred or sold at the retail client’s direction; and
(2) the implications of any transfer of ownership of the retail client’s qualifying cryptoassets used in qualifying cryptoasset staking and/or any rewards earned, including the implications in the event of the insolvency of the firm or any other relevant person who is holding any qualifying cryptoassets and/or rewards earned on behalf of the retail client.

Information about risks

The information about risks must include, where applicable:

(1) the identity of any person or persons the firm currently uses to perform the qualifying cryptoasset staking; and
(2) an explanation of the types of risks that may be relevant in relation to qualifying cryptoasset staking, including that the retail client may lose some or all of their qualifying cryptoassets used in the qualifying cryptoasset staking service in the event of operational disruption.

When considering its approach to the preparation and provision of information in this section, a firm should take into account obligations in the Handbook that may be relevant, including but not limited to the Consumer Duty and obligations elsewhere in PRIN and in COBS.

Point In Time

25/10/2027