FCA UK plans to combat crypto market abuse
The FCA is prioritising efforts to enhance its capacity to detect and address market abuse within the crypto space
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The Financial Conduct Authority (FCA), UK's regulatory body overseeing financial markets and services, has unveiled plans to clamp down on abuse within the crypto market, aiming to foster a fair and transparent regulatory landscape for cryptocurrencies.
In response to a recent government consultation seeking proposals for a targeted market abuse regime tailored to crypto assets, the FCA is doubling down on its efforts to protect consumers, uphold market integrity, and bolster international competitiveness in the crypto space.
The regulator's strategy revolves around enhancing its surveillance capabilities and implementing sophisticated analytics tools, including network analysis and cross-asset class visualisations, to thwart fraudulent activities within the crypto space.
Furthermore, the FCA is developing a market abuse framework exclusively designed for the crypto sector, ensuring an effective regulatory approach. Although such regulatory frameworks may appear burdensome for crypto companies operating in the country, the FCA expressed its intention to design the framework with the aim of fostering innovation and reducing industry expenses.
As the primary watchdog for cryptocurrencies in the UK, the FCA has also implemented stringent measures to regulate the sector in the past. These include a promotions regime mandating risk warnings and cooling-off periods for first-time crypto buyers. Additionally, consultations are ongoing to develop a regulatory framework for stablecoins.
