Key takeaways:
- The FCA of the UK will strengthen its capacity to combat market abuse in the crypto space and support the implementation of a reasonable market abuse policy.
- In addition to enhancing its capacity to monitor the market, the financial regulator announced that it will develop a policy against market manipulation in crypto.
In the upcoming year, the Financial Conduct Authority (FCA) of the United Kingdom will strengthen its capacity to identify and combat market abuse in the cryptocurrency space and support the implementation of a reasonable market abuse policy for the asset class.
One of the FCA’s objectives for 2024–2025 is to improve its regulations against misuse of the cryptocurrency market. The regulator will enhance its monitoring and intervention systems to address market abuse and integrity.
Additionally, the financial watchdog announced that it will build up its sophisticated analytics capabilities, including cross-asset class visualizations and network analysis.
In addition to enhancing its capacity to monitor the market, the financial regulator announced that it will develop a policy against market manipulation in cryptocurrency. The FCA stated in the statement:
“We will assist in delivering a proportionate market abuse regime for Crypto Assets and the PISCES (Private intermittent Share and Capital Exchange Service) facility.”
More regulations may seem like a hassle for domestic cryptocurrency businesses, but the FCA stated that it will create the framework to “support innovation to lower industry costs.”
Additionally, the FCA declared that it will keep monitoring the financial advertisements that cryptocurrency companies publish. According to the regulator, it will improve its technological capacity to identify promotional content that could endanger investors.
According to the agency, it would also expand its consumer awareness programs to inform investors about fraud.
The FCA introduced new regulations for marketing connected to cryptocurrencies in October 2023. To help crypto firms comply, it provided guidance on Nov. 2 for those based in the UK regarding how to adhere to its regulations regarding promoting crypto assets.
The agency stated that the guidelines align with those already in place for other high-risk investments. Many cryptocurrency companies continue to break advertising standards despite their best attempts to offer advice on the new marketing guidelines.
The UK authority announced on February 15 that it had issued 450 notices for illegal cryptocurrency advertisements in 2023 alone. It promised to take legal action against businesses that violated the regulations and made it clear that it would keep up its enforcement of the law against illicit cryptocurrency marketing campaigns through 2024.
