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UK Financial Watchdog Proposes Ban on Non-Regulated Crypto Offers
The UK’s Financial Conduct Authority (FCA) has published a new report outlining directives for the crypto industry, effectively banning non-regulated entities from issuing public crypto offers. This move builds upon existing promotional restrictions, limiting unsolicited crypto communications to UK citizens.
Proposed Legislation and Exceptions
The proposed legislation aims to prevent harm by introducing strong controls, with exceptions possibly made for established crypto asset trading platforms or under specific regulatory waivers. The FCA is seeking public consultation on the newly proposed rules, which include measures to combat market abuse and enhance consumer protection.
“Our Discussion Paper DP24/4 is part of a series of publications that are designed to help us shape the UK’s crypto regime,”
said the FCA.
Key Proposals and Consultation
The FCA’s document invites feedback from the crypto industry on critical areas such as:
- Market entry protocols
- Disclosure requirements
- Mechanisms to combat market abuse
The public consultation on the new rules will be open until March 2025. The FCA is tasked with regulating financial activities across the UK, including the crypto sector, and has been monitoring compliance with anti-money laundering laws since 2020.
Regulatory Framework and Timeline
The new regulatory clarity is part of a broader series of consultations as the FCA gears up for a comprehensive crypto regulatory framework, expected to be fully implemented by 2026. The introduction of draft regulations is expected next year.
The forthcoming regulations aim to enhance consumer protection by ensuring investors have adequate information to make educated investment decisions and by strengthening measures against fraudulent activities through a robust market abuse framework.
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