CRYPTO 6.6 Business activities

A firm must not execute any orders against its proprietary capital on a UK QCATP it operates, except where CRYPTO 6.6.2R applies.

A firm with the appropriate permission may engage in matched principal trading for the purpose of executing client orders on a UK QCATP it operates, when acting in accordance with the non-discretionary rules of the UK QCATP.

Matched principal trading does not exclude the possibility of settlement risk and, accordingly, a firm should take appropriate steps to minimise this risk.

The effect of CRYPTO 6.6.1R is that a firm cannot act as a market maker on a UK QCATP it operates.

A firm must not offer credit to its clients.

A firm with the appropriate permission may execute orders against its proprietary capital or engage in matched principal trading outside the UK QCATP it operates if it:

For the purposes of CRYPTO 6.6.6R, when a firm executes orders against its proprietary capital, an appropriate permission is the permitted activity of dealing in qualifying cryptoassets as principal. A UK QCATP operator requires this permission in addition to carrying on the permitted activity of operating a qualifying CATP. Where a UK QCATP operator wishes only to carry on the additional activity of matched principal trading, it requires a permission of dealing in qualifying cryptoassets as principal subject to a limitation restricting that activity to matched principal trading.