The Financial Conduct Authority (FCA) is seeking feedback on new plans to address issues in the UK’s crypto market.
On December 16, the FCA released a discussion document outlining ways to improve transparency and reduce harmful practices in the industry.
The FCA is asking crypto businesses, policymakers, consumer groups, and other stakeholders to share their thoughts on the proposals.
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Feedback will help inform FCA's next steps. Before the final rules are introduced, a consultation paper will be prepared. The deadline for responses is March 14, 2025.
The FCA suggests that established crypto trading platforms implement stricter internal measures to identify fraud and prevent market abuse. The regulator also emphasized the need for clear disclosures to help people make better financial decisions and improve trust in the market.
The paper builds on discussions with industry participants earlier this year and aligns with ongoing government consultation. The FCA hopes these changes will create a more stable market and encourage long-term investment.
However, the FCA repeated its warnings about the risks of crypto assets, saying they remain primarily unregulated. The regulator said:
If something goes wrong, it’s unlikely you will be protected, and you should be prepared to lose all your money.
The proposals follow recent findings that most crypto firms struggle to meet anti-money laundering requirements.
Last year, 90% of crypto companies' applications were rejected due to weak controls. The FCA also issued over 450 warnings about unauthorized crypto promotions during the same period.
As the FCA works to tighten crypto regulations, other UK authorities are taking similar steps. The Bank of England now requires crypto firms to report holdings and plans by March 2025. What is the purpose of the new regulation? Read the full story.
