Outside Source
A new paper by the UK’s financial watchdog puts the brakes on the crypto industry; effectively banning the issuance of crypto offers by non-regulated entities.
In a new report published on Dec. 16, the UK’s financial authority has outlined new directives for the crypto industry.
- The UK’s FCA is preparing to outlaw public crypto offerings
- This move extends the existing promotional restrictions which limit unsolicited crypto communications to UK citizens
- Exceptions might be made for certain crypto asset trading platforms or under specific exemptions
It is a significant move that builds upon last year’s promotional and advertising constraints, which barred unregistered crypto entities from initiating contact with UK clients.
“Our Discussion Paper DP24/4 (Admissions & disclosures and market abuse regime for cryptoassets) is part of a series of publications that are designed to help us shape the UK’s crypto regime,” the FCA said.
As part of the proposed legislation, the government plans to set “out proposals for firms to introduce strong controls that prevent harm,” and is seeking the consultation of the public on the newly proposed rules. “We are also suggesting certain firms, like authorised crypto trading platforms, share information with each other to help stop suspected market abuse.”
The forthcoming legislation aims to further tighten these controls by disallowing public crypto offers, with exceptions possibly for established trading platforms or under specific regulatory waivers.
The FCA’s document invites feedback from the crypto industry on critical areas such as market entry protocols, disclosure requirements, and mechanisms to combat market abuse.
The new regulatory clarity is part of a broader series of consultations as the FCA gears up for a comprehensive crypto regulatory framework, expected to be fully implemented by 2026 following the introduction of draft regulations next year.
The FCA, tasked with regulating financial activities across the UK, including the burgeoning crypto sector, has been monitoring compliance with anti-money laundering laws since 2020.
The forthcoming regulations aim to enhance consumer protection by ensuring investors have adequate information to make educated investment decisions and by strengthening measures against fraudulent activities through a robust market abuse framework.
The FCA is inviting public consultations on the new rules until March 2025.
This article first appeared at crypto.news
