UK FCA to Ban Unregulated Firms from Public Crypto Offers

UK’s Financial Conduct Authority (FCA) is taking a firm step towards regulating crypto offerings. In a recent consultation paper, the FCA proposed a ban on public crypto offerings by firms not regulated under its jurisdiction. The FCA’s decision builds on previous restrictions, including bans on unregistered crypto promotions.

Strengthening Consumer Protection and Market Confidence

The FCA’s main goal is to reduce consumer risks. By focusing on unregulated firms, the FCA hopes to prevent fraud and manipulation. New rules would require firms to provide clearer disclosures and adhere to fair market practices. 

This initiative aims to improve regulatory clarity and transparency across the crypto space. The FCA’s new framework will regulate activities like crypto trading, custody, and stablecoin operations. 

Public Consultation and Future Implementation

While targeting unregulated firms, there may be exceptions for authorized platforms that meet specific criteria. These details are still under discussion, and the FCA is inviting feedback from industry players.

The FCA seeks input from a wide range of stakeholders, including crypto firms, financial institutions, and consumers. The public consultation will remain open until March 2025, with a draft law expected by the end of that year. 

The full regulatory framework will be in place by 2026. For now, the FCA’s proposal aims to strike a balance between innovation and consumer protection. By tightening regulations, the authority seeks to build trust in the crypto market and ensure a safer, more transparent environment for all participants.