The UK Financial Conduct Authority (FCA) has initiated a public consultation aimed at refining regulations for crypto, according to a Dec. 16 statement.
The initiative signals the FCA’s commitment to crafting a balanced framework that nurtures innovation while addressing risks in the crypto sector. It seeks to address pressing challenges, such as market abuse, financial fraud, and unclear disclosures, which undermine consumer trust.
The proposals also aim to introduce measures that improve transparency and ensure fair trading practices. By providing clear guidance, the FCA hopes to build a trusted and sustainable crypto market in the UK, encouraging growth and long-term investment.
According to the regulator:
“We are also suggesting certain firms, like authorised crypto trading platforms, share information with each other to help stop suspected market abuse. This will reduce fraud and help promote good practices in the sector.”
Efforts to strengthen regulation will also focus on preventing the proliferation of fraudulent tokens and restricting unregistered crypto firms. While public offerings of certain cryptocurrencies may face limitations, specific exemptions will apply to compliant platforms and services.
The consultation forms part of the UK government’s broader strategy to establish a robust legal framework for crypto. The framework builds on initial plans announced in 2023 and will eventually cover trading activities, stablecoin oversight, asset custody, and more. A draft regulation is expected in 2025, with full implementation of the regime slated for 2026.
The collaboration is part of the FCA’s aim to create an environment where innovation can thrive without compromising market integrity or consumer protection.
The consultation will run from Dec. 16 to March 14, 2025, with the regulator urging input from firms, legal experts, and individuals across the industry. It added:
“We want to develop a crypto regime that is fair, balanced and proportionate for all. We need input from the Government, our international partners, industry and consumers to help us get the future rules right.”
Credit: Source link