Strengthened Crypto Regulations Proposed by Financial Conduct Authority in United Kingdom

The Financial Conduct Authority (FCA) has announced plans to strengthen crypto regulations in the United Kingdom, aiming to increase transparency and protect investors. In a recent statement, the agency emphasized the importance of promoting consumer trust while encouraging innovation in the cryptocurrency space.

To achieve this balance, the FCA has proposed stricter measures for companies offering digital assets, including mandatory disclosures regarding project risks, governance structures, and environmental impacts. This shift towards increased oversight seeks to curb scams, insider trading, and other malicious practices that have tainted the industry.

One of the most significant changes is the requirement for public offers of crypto assets to be listed on regulated trading platforms. This move aims to filter out unregistered or ill-reputed entities from entering the market, thereby shielding investors from potential losses.

In addition to these measures, the FCA has also demanded more stringent checks on teams behind the projects, essentially subjecting them to a trust test. Any entity that fails to pass this scrutiny will be prohibited from operating in the UK’s cryptocurrency space.

Furthermore, trading platforms will need to establish systems for detecting and reporting market abuse, ending the era of turning a blind eye towards shady practices.

The FCA has invited industry experts and the general public to provide feedback on its proposals by March 2025. Once the feedback is incorporated, the authority plans to roll out these regulations in 2026.

While the proposed regulations may pose challenges for companies operating in the UK, they are likely to make the market a safer place for investors.

Source: coinpedia.org