The UK's Financial Conduct Authority (FCA) has outlined its latest steps to enhance the integrity of the country’s crypto market through a new Discussion Paper focusing on admissions, disclosures, and market abuse prevention.
The paper incorporates insights from FCA-led crypto roundtables held earlier this year and proposes measures for firms to establish strong controls that "prevent harm" and reduce fraud. One key recommendation is for crypto trading firms to share information to help combat market abuse and protect investors.
The FCA is urging the crypto industry to engage with the proposals and provide feedback to help shape regulations in the largely unregulated sector. A spokesperson emphasized:
“We want industry to take the lead in developing new ways of disclosing important information to make sure people understand the risks before purchasing crypto.”
Phased Implementation
The FCA has mapped out a phased approach for the introduction of the cryptoasset regime, beginning in Q4 2024 and continuing into 2026. The process will include:
- Discussion Papers
- Consultation Papers
- Final Policy Statements
This structured timeline is expected to culminate in the official launch of the regulated regime by 2026. Meanwhile, the government plans to engage firms on draft legal provisions for the framework as early as 2025.
By encouraging industry collaboration and introducing strong controls, the FCA aims to foster a more secure and transparent crypto market, protecting both investors and market integrity.
