The UK’s Financial Conduct Authority (FCA) has outlined new initiatives aimed at enhancing the integrity of the country’s crypto market.
The regulator is seeking public input on a newly released Discussion Paper that discusses potential admissions and disclosures as well as the implementation of a market abuse regime. This paper incorporates insights from a series of FCA-led roundtable discussions with industry stakeholders held earlier this year.
Key proposals include the introduction of robust controls by firms to "prevent harm," along with a call for crypto trading companies to exchange information to combat fraud and mitigate market abuse. The FCA emphasizes the importance of industry leadership in developing innovative disclosure practices that ensure consumers fully understand the risks associated with crypto investments.
Looking ahead, the government aims to consult firms on draft legal provisions for the cryptoasset regime starting as early as 2025. The FCA has outlined a phased approach, beginning in Q4 2024 and extending into 2026, which will include discussion papers, consultation papers, and final policy statements leading up to the regime’s expected launch in 2026.