The Financial Conduct Authority (FCA) in the United Kingdom has outlined its plans for the next 12 months, with a particular focus on combatting market abuse in the crypto sector. The regulatory body aims to enhance its capabilities in detecting and pursuing market abuse, while also delivering a fair market abuse regime for cryptocurrencies.
To achieve these goals, the FCA will implement stricter measures against crypto market abuse, improving its monitoring and intervention systems to ensure market integrity. Additionally, the authority will develop advanced analytics capabilities, such as network analysis and cross-asset class visualizations.
While some may view the introduction of new regulations for the crypto space as burdensome for UK-based crypto companies, the FCA intends to create a framework that supports innovation and reduces industry costs.
Furthermore, the FCA will continue its supervision of financial promotions published by crypto firms, enhancing its technological capabilities to identify promotional material that could potentially harm investors. The regulator also plans to launch consumer awareness campaigns to educate investors about scams in the crypto market.
In October 2023, the FCA introduced new rules for crypto-related marketing. It has since released guidance for UK-based crypto firms on how to comply with these rules, aiming to assist companies in meeting regulatory requirements. The FCA’s rules align with existing regulations for other high-risk investments.
Despite these efforts, many crypto firms are still violating advertising regulations. In 2023 alone, the FCA issued 450 alerts for illegal crypto ads. The regulator has pledged to take action against companies that breach the rules and will continue to combat illegal crypto marketing promotions in 2024.
In other news, former Bank of England fintech lead, Chris Woolard, stated that UK regulations will allow stablecoins and central bank digital currencies (CBDCs) to coexist. This development provides further opportunities for the growth and adoption of digital assets in the country.
Overall, the FCA’s plans for the next 12 months demonstrate a commitment to safeguarding the crypto market and protecting investors from abuse and fraudulent activities.