The UK Financial Conduct Authority (FCA) has launched a public consultation to refine cryptocurrency regulations, demonstrating its commitment to a balanced framework that fosters innovation while managing risks in the crypto sector. The consultation aims to address issues such as market abuse, financial fraud, and unclear disclosures that undermine consumer trust.
It also proposes measures to improve transparency and ensure fair trading practices. The FCA hopes that by providing clear guidance, it can establish a trusted and sustainable UK crypto market that encourages growth and long-term investment. The FCA is considering requiring certain authorized crypto trading platforms to share information with each other to help prevent market abuse and reduce fraud, promoting good practices in the sector.
Regulatory efforts will focus on preventing fraudulent tokens and restricting unregistered crypto firms. Public offerings of certain cryptocurrencies may face limitations, but compliant platforms and services will be exempt. This consultation is part of the UK government’s broader strategy to create a robust legal framework for crypto.
The framework, which will eventually cover trading activities, stablecoin oversight, asset custody, and more, builds on initial plans announced in 2023. A draft regulation is expected in 2025, with full implementation of the regime planned for 2026. The FCA invites input from firms, legal experts, and individuals across the industry during the consultation, which runs from Dec.
16 to March 14, 2025. The regulator emphasizes its goal to develop a “fair, balanced and proportionate” crypto regime that benefits all stakeholders.
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