🚀 FCA to Ban Public Crypto Offerings in the UK
postedĀ 16 Dec 2024
On December 16, the UK Financial Conduct Authority (FCA) revealed plans to prohibit initial coin offerings (ICOs) as part of stricter crypto regulations.
This measure will become part of the UKās updated regulatory framework for the cryptocurrency market, which is scheduled to take effect in 2026.
The document outlines the following proposals:
- Prohibiting public offers of cryptocurrencies and other forms of crypto-based fundraising. This regulation will expand upon existing laws that restrict unlicensed crypto companiesā access to UK clients.
- Applying these rules to crypto exchanges and other platforms. However, platforms with the necessary licenses could potentially be exempted.
- Developing investor protection measures, such as enhancing transparency and preventing market manipulation.
The FCA has issued the document for public consultation and encourages input from the crypto industry to help shape the regulatory landscape.
The UK Sets Out New Cryptocurrency Regulations. Source: www.fca.org.uk
The document highlights the following:
We are also suggesting certain firms, like authorised crypto trading platforms, share information with each other to help stop suspected market abuse. This will reduce fraud and help promote good practices in the sector. We encourage industry to share its expertise and help us shape the rules. We want industry to take the lead in developing new ways of disclosing important information to make sure people understand the risks before purchasing crypto
Itās evident that the UK is opting for stricter controls, in contrast to Europe and the US, which are moving toward more liberal cryptocurrency legislation.
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