You are viewing CRYPTO 9.2 Information requirement as it appeared on 25/10/2027. The current version of CRYPTO 9.2 Information requirement was last updated on 25/10/2027.

CRYPTO 9.2 Information requirement

25/10/2027R
  1. (1) A firm must provide a retail client with information about the firm and its qualifying cryptoasset lending or borrowing service.
  2. (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 lending or borrowing service; and
    2. (b) before one of the following, whichever is earlier:
      1. (i) a retail client is bound by any agreement relating to qualifying cryptoasset lending or borrowing; or
      2. (ii) the provision of those services.
  3. (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 lending or borrowing service (where it does not constitute a durable medium) where the website conditions are satisfied.
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  1. (1) Where a retail client has provided express prior consent for a firm to use any yield earned in further qualifying cryptoasset lending, as opposed to yield being transferred or allocated to the retail client immediately, the firm is not required to provide the information in CRYPTO 9.2.1R again in relation to the use of yield in further qualifying cryptoasset lending.
  2. (2) This is provided the use of any yield in further qualifying cryptoasset lending is on terms that are the same as, or substantially similar to, the original qualifying cryptoasset lending service.
  3. (3) A firm should nonetheless consider whether it would be in the best interests of the retail client for information about any further qualifying cryptoasset lending to be provided even where this is not required.
25/10/2027R

A firm must regularly – and at least once every 3 months – review the information provided under CRYPTO 9.2.1R(1). If necessary, the firm must update the information as soon as possible, to ensure it remains accurate and up to date.

25/10/2027R

A firm must notify a retail client in good time about any material change to the information provided under CRYPTO 9.2.1R(1) relevant to the qualifying cryptoasset lending or borrowing service that the firm is providing to that retail client.

Content of the information

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The information in CRYPTO 9.2.1R(1) must include:

  1. (1) information about the qualifying cryptoasset lending or borrowing service to be provided to the retail client;
  2. (2) information about the qualifying cryptoassets that will be provided pursuant to the qualifying cryptoasset lending or borrowing service;
  3. (3) information about the transfer and return of the qualifying cryptoassets or equivalent qualifying cryptoassets provided or received as part of the qualifying cryptoasset lending or borrowing service and any yield earned or qualifying cryptoasset borrowing collateral provided;
  4. (4) information about the retail client’s access to their qualifying cryptoassets or equivalent qualifying cryptoassets and access to any yield earned;
  5. (5) information about any restrictions, minimum thresholds and eligibility requirements for the qualifying cryptoasset lending or borrowing service;
  6. (6) information about risks;
  7. (7) any other information material to a retail client’s understanding of the qualifying cryptoasset lending or borrowing service; and
  8. (8) when the information was last updated.

Information about the qualifying cryptoasset lending or borrowing service

25/10/2027R

Information about the qualifying cryptoasset lending or borrowing service to be performed for the retail client must include:

  1. (1) the qualifying cryptoasset lending or borrowing service to be performed;
  2. (2) how yield is generated for qualifying cryptoasset lending, if applicable; and
  3. (3) the loan levels and limits modelled pursuant to CRYPTO 9.8.1R.

Information about the qualifying cryptoassets

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  1. (1) 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 lending or borrowing service provided. This could include providing links to QCDDs published in accordance with CRYPTO 3.

  2. (2) Firms are reminded of the requirements, where applicable, in CRYPTO 5.3.7R to make available:

    1. (a) the QCDD and supplementary disclosure document for the qualifying cryptoassets; and/or
    2. (b) the stablecoin QCDD for the UK qualifying stablecoin,

    in respect of which a firm deals or arranges deals.

  3. (3) In this chapter, including in relation to (1), 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

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  1. (1) The information about the transfer and return of the qualifying cryptoassets or equivalent qualifying cryptoassets provided or received as part of the qualifying cryptoasset lending or borrowing service, and any yield earned or qualifying cryptoasset borrowing collateral provided should include, where applicable:
    1. (a) information about any restrictions, including those not set by the firm itself, on the retail client’s ability to cease the qualifying cryptoasset lending or borrowing service being performed for them, and to receive the return of their qualifying cryptoassets or equivalent qualifying cryptoassets, and any yield earned or qualifying cryptoasset borrowing collateral provided; and
    2. (b) information about the amount of time required for the qualifying cryptoassets or equivalent qualifying cryptoassets provided or received as part of the qualifying cryptoasset lending or borrowing service, and any yield earned or qualifying cryptoasset borrowing collateral provided, to be returned to the retail client, and whether and in what circumstances the amount of time is variable.
  2. (2) In this chapter, including in (1), a reference to an ‘equivalent’ qualifying cryptoasset means the same type of qualifying cryptoasset, unless the retail client provides express prior consent to receive or return, as the case may be, a qualifying cryptoasset on a different network that uses distributed ledger technology (eg, blockchain) to the qualifying cryptoasset originally provided or received as part of the cryptoasset lending or borrowing service.

Information about the retail client’s access to their qualifying cryptoassets or equivalent qualifying cryptoassets and yield

25/10/2027G

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

  1. (1) what access the retail client will have to their qualifying cryptoassets or equivalent qualifying cryptoassets while those qualifying cryptoassets are engaged in the qualifying cryptoasset lending service, including whether the qualifying cryptoassets can be transferred or sold at the retail client’s direction;
  2. (2) whether any yield is safeguarded for the retail client, paid directly to the retail client, re‑invested or re-used for the benefit of the retail client, or used or applied by the firm or another person; and
  3. (3) the implications of any transfer of ownership of the retail client’s qualifying cryptoassets and/or any yield earned, including the implications in the event of the insolvency of the firm or any other relevant person who is safeguarding any qualifying cryptoassets and/or yield earned on behalf of the retail client.

Information about risks

25/10/2027R

The information about risks must include:

  1. (1) an explanation of the types of risks that may be relevant in relation to qualifying cryptoasset lending or borrowing, including that the retail client may lose some or all of their qualifying cryptoassets, any yield earned, or qualifying cryptoasset borrowing collateral provided in the event of operational disruption;
  2. (2) in the case of qualifying cryptoasset lending, if applicable, an explanation as to how the firm mitigates counterparty risk arising from its yield-generating activities using qualifying cryptoassets provided by retail clients to be used in the qualifying cryptoasset lending services; and
  3. (3) an explanation of any other risks of which a retail client ought to be aware.
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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