Catenaa, Tuesday, December 17, 2024-The Financial Conduct Authority (FCA) on Monday released a discussion paper aimed at tightening regulations within the United Kingdom’s crypto-asset market.
The move seeks to tackle abuse, enhance transparency, and provide clearer rules for businesses and consumers.
The FCA is urging authorized trading platforms to adopt stronger internal measures to detect and prevent market abuse, sharing information to identify fraudulent activities.
The regulator emphasized that improving disclosures and anti-abuse frameworks would bolster market integrity and help investors make informed decisions.
The discussion paper builds on findings from earlier government consultations and industry roundtables, highlighting the need for a sustainable regulatory framework to encourage long-term investment and growth.
The FCA reaffirmed the risks associated with crypto, cautioning investors that the largely unregulated market offers limited protections.
“If something goes wrong, it’s unlikely you will be protected, and you should be prepared to lose all your money,” the regulator warned.
The announcement follows recent data showing crypto adoption among UK adults has risen to 12%, representing 7 million holders—an increase from 5 million in 2022.
Feedback on the FCA’s proposals is open until March 14, 2025, after which a formal consultation paper will outline final rules.
The Bank of England is also stepping up scrutiny, requiring firms to report crypto exposures by March 2025.
