Crypto rules in UK have once again undergone a change. According to official reports, the UK’s financial watchdog has released a new paper that effectively shuts down the cryptocurrency market by prohibiting unregulated companies from issuing crypto offers.
The rules come at a time when UK is undergoing a shift in crypto rules, with regulators being stricter and vigilant about the diaspora.
The FCA at present wants to establish a balanced and equitable crypto regulatory framework. It is looking for feedback from the government, foreign partners, business community, and customers.
UK Financial Authority Lays Down Crucial Rules
The FCA in the UK is getting ready to ban open cryptocurrency offerings by non-authorized offerors. The current promotional restrictions that restrict unsolicited crypto communications to UK citizens are being extended by this action.
These new guidelines for the cryptocurrency sector have been laid out by the UK’s financial authority in a report released on December 16.
FCA Asks Industry Input In New Blog Post
According to the blog post, the FCA is looking for input on how it intends to increase market transparency for cryptocurrencies in the UK. The proposals are centered on market abuse regimes, disclosures, and admissions in order to improve the integrity of cryptocurrency markets and assist individuals in making well-informed financial decisions.
In order to prevent market abuse, the FCA’s Discussion Paper DP24/4 proposes that some companies, like approved cryptocurrency trading platforms, exchange information and lays out plans for businesses to implement more stringent controls. This may lessen fraud and encourage ethical behavior.
FCA Seeks UK Crypto Regulations By 2026
Today’s new rules come as the FCA had previously stated that it wishes to bring new rules by 2026.
With input from agencies like the Treasury, Bank of England, and U.S. Securities and Exchange Commission, the UK Financial Conduct Authority intends to complete regulations for the cryptocurrency sector by 2026.
Among other things, the FCA creates regulations to control lending, trading platforms, stablecoins, and market abuse.
In order to keep the UK from lagging behind countries like the US and Hong Kong, the regulatory body intends to start consultations and talks by the end of 2024.
By early 2025, other important areas such as lending, trading platforms, staking, and prudential crypto exposure will be addressed after this first phase.
The final policy statements will formally establish the UK’s official cryptocurrency regulation regime and are anticipated to be released in 2026.
This all-encompassing strategy demonstrates the FCA’s dedication to maintaining transparency and taking industry stakeholders’ input into account.