FCA Seeks Feedback on Crypto Admissions and Disclosures Regime

The Financial Conduct Authority (FCA) is seeking feedback on
its plans to improve transparency in the UK’s cryptocurrency markets. The
proposals focus on admissions, disclosures, and market abuse regimes to enhance
the integrity of crypto markets and help people make informed financial
decisions.

FCA Discusses Market Abuse Prevention

The FCA’s Discussion Paper DP24/4 outlines plans for firms
to adopt stronger controls to prevent harm and suggests that certain firms,
such as authorized crypto trading platforms, share information to prevent
market abuse. This could reduce fraud and promote good practices.

The FCA encourages industry input to help shape new
disclosure methods that will ensure consumers understand the risks before
purchasing crypto. The paper builds on earlier consultations, including
insights from FCA-led roundtables with industry participants.

#XDC 🇬🇧UK plans for crypto regulation provide welcome clarity | FCA Crypto Roadmap The government plans to engage firms on draft legal provisions for the cryptoasset regime as early as possible in 2025.The FCA has set out a phased approach, starting in Q4 2024 and continuing… pic.twitter.com/Evz4Lbn59k

— Cryptonaire D (@darrinlewisjr) December 11, 2024

FCA Warns Crypto Remains High-Risk

The FCA aims to create a fair and balanced crypto regulatory
regime. It is seeking input from government, international partners, industry,
and consumers. Feedback is open until March 14, 2025.

The FCA continues to remind the public that while crypto
regulation in the UK is developing, crypto remains largely unregulated and
high-risk. Consumers should be prepared to lose all their money if something
goes wrong.

FCA Highlights Rising Crypto Awareness

Meanwhile, the FCA
has released new research on UK consumer attitudes toward crypto, as
reported by Finance Magnates.
The study reveals that 12% of UK adults own crypto, up from 10%, and awareness
has increased from 91% to 93%. The average value of crypto held rose from
£1,595 to £1,842.

Most respondents said family and friends were their main
sources of information, and only 10% did no research before purchasing. Despite
this, one-third believed they could file a complaint with the FCA, though
crypto remains unregulated and high-risk.

This article was written by Tareq Sikder at www.financemagnates.com.