The Financial Conduct Authority (FCA) has released a discussion paper centered around tightening rules in the UK’s crypto-asset market by clamping down on what it sees as abuse and a lack of transparency.
The regulator says it hopes to improve regulatory clarity in an effort to provide “clear and consistent ‘rules of the game’ for firms and consumers,” according to a statement on Monday.
The paper suggests that authorized crypto trading platforms adopt strong internal measures to prevent market abuse and share information to detect fraudulent activity.
“Admissions and disclosures and market abuse regimes are crucial to improving the integrity and cleanliness of our crypto markets, as well as helping people make informed financial decisions,” the FCA stated Monday.
7 Million UK Adults Now Own Crypto: Financial Conduct Authority
UK regulator the Financial Conduct Authority (FCA) has released new research revealing that 12% of UK adults now own crypto, up from 10% in previous findings. According to the nationally representative study of 2,199 UK adults, the figure extrapolates to 7 million UK crypto holders, up from 5 million in 2022. The average value of crypto held by people has increased over the same period, from £1,595 to £1,842. Among crypto holders, the number of adults holding more crypto has increased, too—with...
The FCA said that developing a stable and reliable market framework will encourage sustainable investment and long-term growth within its country's borders.
Building on insights gathered from crypto roundtables earlier this year, the proposal received input from the government’s ongoing consultation with industry stakeholders.
The FCA emphasized crypto assets remain high-risk and largely unregulated, warning, “If something goes wrong, it’s unlikely you will be protected, and you should be prepared to lose all your money.”
Telegram Wallet Disabled in UK as Developers Seek FCA License
The Wallet app on Telegram is temporarily down in the United Kingdom as the developers seek regulatory approval in the country In a Wednesday post on the messaging app, the developers of Wallet—a crypto wallet built as a mini app on messaging platform Telegram, though not built or operated by Telegram—said that it had disabled features for UK customers. It added that British users would be able to withdraw assets to external wallets with no fees while it applied to the UK's Financial Conduct Aut...
This initiative comes after the FCA revealed in September that 90% of crypto firm applications were rejected last year due to weak anti-money laundering controls. Italso issued over 450 consumer alerts against unauthorized crypto promotions in the same period.
The Bank of England has similarly increased scrutiny, requiring firms to report their crypto-asset exposures by March 2025.
Feedback on the discussion paper will inform the FCA’s next steps, with a Consultation Paper to follow before final rules are adopted. The agency is calling upong industry participants, policymakers, consumer groups, and other stakeholders to provide input by no later than March 14, 2025.
Edited by Sebastian Sinclair
