The UK’s Financial Conduct Authority (FCA) has launched a public consultation aimed at refining crypto regulations, according to a December 16 statement.
The initiative demonstrates the FCA’s commitment to developing a balanced framework that promotes innovation while addressing risks in the crypto sector. It seeks to address pressing challenges, such as market abuse, financial fraud and unclear information, which undermine consumer confidence.
The proposals also aim to introduce measures improving transparency and ensuring fair trading practices. By providing clear guidance, the FCA hopes to create a trusted and sustainable crypto market in the UK, encouraging long-term growth and investment.
According to the regulator:
“We also suggest that certain companies, 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 practice in the sector.
Efforts to strengthen regulation will also focus on preventing the proliferation of fraudulent tokens and restricting unregistered crypto companies. Although public offerings of certain cryptocurrencies may be subject to limitations, specific exemptions will apply to compliant platforms and services.
The consultation is part of the UK government’s wider strategy to establish a strong legal framework for crypto. The framework builds on initial plans announced in 2023 and will eventually cover trading activities, stablecoin oversight, asset custody, and more. A draft regulation is expected in 2025, and full implementation of the regime is planned for 2026.
This collaboration is part of the FCA’s aim to create an environment in which innovation can thrive without compromising market integrity or consumer protection.
The consultation will run from December 16 to March 14, 2025, with the regulator seeking input from businesses, legal experts and individuals across the sector. He added:
“We want to develop a fair, balanced and proportionate crypto regime for everyone. We need input from government, our international partners, industry and consumers to help us develop good rules.
