UK FCA launches public consultation to develop balanced crypto regulatory framework

The UK Financial Conduct Authority (FCA) has launched a public consultation aimed at improving cryptocurrency regulation, according to a statement on December 16. The plan shows that the FCA is committed to developing a balanced framework that fosters innovation while addressing risks in the cryptocurrency space. It seeks to address pressing challenges such as market abuse, financial fraud and unclear disclosures that undermine consumer trust. The proposals also aim to introduce measures to increase transparency and ensure fair trading practices. By providing clear guidance, the FCA hopes to build a trustworthy and sustainable cryptocurrency market in the UK that encourages growth and long-term investment. "We also recommend that certain firms, such as authorized cryptocurrency trading platforms, share information with each other to help stop suspected market abuse. This will reduce fraud and help promote good practices in the industry," the FCA said. The consultation is part of the UK government's broader strategy to establish a sound legal framework for cryptocurrencies. The framework builds on the initial plan announced in 2023 and will eventually cover trading activities, stablecoin regulation, asset custody, and more. A draft regulation is expected in 2025, with full implementation of the regime in 2026. The public consultation will run from December 16 to March 14, 2025, and the FCA urges companies, legal experts and individuals across the industry to provide input. (CryptoSlate) Yesterday, the Financial Conduct Authority (FCA) of the United Kingdom stated in a document on the upcoming cryptocurrency regulatory system that the United Kingdom intends to enact laws to prohibit the public sale of cryptocurrencies. The law will draw on the UK's promotional rules and prohibit unregistered cryptocurrency companies from approaching UK customers. Only crypto asset trading platforms and products that meet the exemption conditions are not subject to this restriction.