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FCA Calls for Industry Input on Plans to Tackle Abuse in UK Crypto Market

Author: Content Editor
The Financial Conduct Authority (FCA) in the UK has released a discussion paper aimed at improving regulatory clarity and preventing market abuse in the crypto sector. The paper suggests that authorized crypto trading platforms should implement strong internal measures to detect fraudulent activity and share information. The FCA believes that improving the integrity and cleanliness of crypto markets is crucial for informed financial decision-making. It also emphasized that crypto assets remain high-risk and largely unregulated, and investors should be prepared to lose all their money. The FCA's initiative follows its rejection of 90% of crypto firm applications last year due to weak anti-money laundering controls. The Bank of England has also increased scrutiny by requiring firms to report their crypto-asset exposures by 2025. Feedback on the discussion paper will inform the FCA's next steps before final rules are adopted.

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