FCA Intensifies Measures to Tackle Crypto Market Abuse in the UK
Summary:
The UK's Financial Conduct Authority (FCA) plans to enhance its monitoring and intervention techniques to tackle market abuse in the cryptocurrency sector over the next year. It aims to implement a market abuse regime for the crypto sector, boost tech capabilities to detect harmful promotional material, and expand consumer awareness campaigns. Despite the tighter measures, the authority maintains that the new framework will support industry innovation and reduce costs. It also plans to continue stringently supervising marketing materials from crypto firms.
The Financial Conduct Authority (FCA) of the United Kingdom has set its sights on strengthening its ability to detect and act against market malpractice in the cryptocurrency sector over the next year. The regulatory body's agenda for the upcoming period details an enhanced focus on crypto market irregularities. In its blueprint for 2024-2025, one of the FCA's stated objectives involves intensifying its surveillance against manipulation in the cryptocurrency market. To that end, it will elevate both its monitoring strategies and its intervention protocols. The financial supervisory body also aims to utilize advanced analysis tools, such as network examination and cross-asset class illustrations. Apart from this, the FCA plans to establish a market abuse regime tailored for the cryptocurrency sector. In its written statement, the regulator noted: “A proportionate market abuse regime for Crypto Assets and the Private Intermittent Share and Capital Exchange Service (PISCES) will be facilitated.” Despite the perceived challenge this new framework could pose for crypto enterprises in the U.K., the FCA assures that the system will be designed to “promote innovation while reducing industrial costs.” The FCA also asserts that it will persist in overseeing all promotional content from crypto firms. The monitoring body aims to increase its technical capabilities to detect any promotional materials that could potentially negatively impact investors. Additionally, the authority will further expand its consumer awareness initiatives to inform investors about potential scams. The FCA began enforcing new marketing regulations for the cryptocurrency industry in October 2023. Subsequently, it published helpful guidelines for U.K. crypto firms on complying with its promotional mandates for cryptocurrencies. The authority states these rules are consistent with existing guidelines for similar high-risk investment ventures. Despite the FCA's efforts to clarify these novel marketing regulations, several crypto firms continue to infract upon these advertising rules. As of February 15, the U.K. authority reported issuing 450 warnings for illegitimate crypto advertisements just for the year 2023. The FCA has warned offenders of impending action taken against any rule violations and reiterated its commitment to address illegal crypto marketing promotions throughout 2024.
Published At
3/19/2024 4:05:19 PM
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