The UK Financial Conduct Authority (FCA) has outlined a comprehensive plan to establish a full regulatory framework for cryptoassets by 2026. As part of its roadmap, the FCA will release discussion papers addressing stablecoin rules, admissions and disclosures, and market abuse in late 2024. By early 2025, additional consultations will focus on trading platforms, lending practices, and staking rewards. These steps build toward the publication of final policy statements, which will enable the full regime to take effect.
Matthew Long, the FCA’s director of payments and digital assets, recently held extensive discussions to refine its approach to regulating crypto assets. He explained on Tuesday that over 100 organizations, including crypto exchanges, banks, universities, and regulatory bodies such as the U.S. Securities and Exchange Commission (SEC), participated in these roundtables.
Topics included admissions and disclosures, market abuse, and trading platforms. Policymakers gathered diverse perspectives to address the challenges of regulating the fast-evolving crypto landscape. The aim is to establish a framework that balances innovation with investor protection while accommodating the unique characteristics of decentralized assets.
Key takeaways from the discussions highlighted participants’ interest in a tailored, industry-led admissions and disclosures regime. Challenges surrounding decentralized cryptoassets, such as the difficulty in adhering to disclosure requirements, were noted. Regarding market abuse, international data privacy laws were identified as obstacles to information sharing.
The group also debated the complexities of regulating trading platforms, including best execution criteria and conflicts of interest for platforms issuing their own tokens. The FCA emphasized its progress in areas like implementing international standards through the International Organization of Securities Commissions (IOSCO) and collaborating with industry on a market-abuse information-sharing platform. These consultations mark a step toward comprehensive engagement with stakeholders to finalize robust regulations.