The Financial Conduct Authority (FCA) plans to improve the transparency of the UK’s crypto market by getting feedback on its latest Discussion Paper DP24/4. These responses will better protect consumers and support the country’s growth in the sector, all the while ensuring it remains competitive.
The Discussion Paper DP24/4 (admissions and disclosures and market abuse regime for cryptoassets) is part of a series of publications that are designed to help the FCA shape the UK’s crypto regime. These are crucial to improving the integrity and cleanliness of crypto markets, as well as assisting people to make informed financial decisions.
The FCA’s paper sets out proposals for firms to introduce strong controls that prevent harm. It also suggests certain firms, like authorised crypto trading platforms, share information with each other to help stop suspected market abuse. Consequently, the FCA hopes this will reduce fraud and help promote good practices in the sector.
In its call for responses announcement, the FCA said: “We encourage industry to share its expertise and help us shape the rules. We want industry to take the lead in developing new ways of disclosing important information to make sure people understand the risks before purchasing crypto.”
Clear crypto regulation will improve the integrity of the UK’s crypto markets, help protect people and support the UK’s growth and competitiveness.
Exploring discussions
The Discussion Paper reflects insights gained from a series of FCA-led crypto roundtables held with industry experts earlier in the year. It also builds on the Government’s earlier consultation.
In its announcement, the FCA also 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. You have until 14 March 2025 to give us your feedback.
“We continue to remind people that while we continue to develop the UK’s crypto regulation, crypto remains largely unregulated in the UK and high risk. If something goes wrong, it’s unlikely you will be protected and you should be prepared to lose all your money.”
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