According to a statement on December 16, the UK Financial Conduct Authority (FCA) has launched a public consultation to refine crypto regulations.
The initiative reflects the FCA’s commitment to creating a balanced framework that promotes innovation while addressing risks in the crypto sector. It aims to tackle pressing challenges such as market abuse, financial fraud and unclear disclosures, which undermine consumer confidence.
The proposals also aim to introduce measures that improve transparency and ensure fair trading practices. By providing clear guidance, the FCA hopes to build a trusted and sustainable crypto market in Britain, encouraging growth and long-term investment.
According to the regulator:
“We also propose that certain companies, such as authorized crypto 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 regulations will also focus on preventing the spread of fraudulent tokens and restricting unregistered crypto companies. While public offerings of certain cryptocurrencies may face restrictions, specific exceptions will apply for compliant platforms and services.
The consultation is part of the UK government’s wider strategy to establish a robust legal framework for crypto. The framework builds on initial plans announced in 2023 and will eventually include trading operations, stablecoin supervision, asset custody and more. A draft regulation is expected in 2025, while full implementation of the regime is planned for 2026.
The partnership is part of the FCA’s aim to create an environment where innovation can thrive without compromising market integrity or consumer protection.
The consultation will run from December 16 to March 14, 2025, with the regulator calling for input from companies, legal experts and individuals from across the sector. It added:
“We want to develop a crypto regime that is fair, balanced and proportionate for everyone. We need input from government, our international partners, industry and consumers to help us get the future rules right.”