FCA Cryptoasset Regulation Update: What You Need to Know

and is underpinned by market integrity and consumer trust. The goal is to create a safe space for growth and exploration in the world of cryptoassets.

The FCA has been hard at work developing its approach to regulating cryptoassets. They recently held a series of roundtables with over 100 organizations and experts in the field to gather perspectives on how they should move forward. Among the topics discussed were admissions and disclosures, market abuse, and trading platforms and intermediaries.

When it comes to admissions and disclosures, the FCA emphasized the importance of providing investors with the information they need to make informed decisions. There was strong support for an industry-led approach that takes into account the different needs of institutional and retail investors. Participants also acknowledged that compliance could be more challenging in the decentralized world of crypto.

Market abuse is another key area of focus for the FCA. They recognize that market abuse can manifest in unique ways in the crypto world and are working to address these challenges. By considering the international context and the decentralized nature of cryptoassets, the FCA aims to create a level playing field for all.

Trading platforms and intermediaries are also on the FCA’s radar. They want to establish rules that promote fair, transparent, and efficient trading. Discussions included topics like operational resilience, conflicts of interest, and order execution.

Looking ahead, the FCA has laid out a roadmap for its future policy publications on cryptoassets. They plan to release discussion and consultation papers on various aspects of regulation, such as admission and disclosures, market abuse, trading platform rules, and more. By 2026, they aim to have all policy statements and final rules in place, allowing firms time to prepare before the new regime goes live.

While the FCA acknowledges that there is still work to be done and timelines may shift depending on government decisions, they are committed to creating a regulatory framework that supports innovation, protects investors, and fosters trust in the cryptoasset sector. Stay tuned for more updates as the FCA continues on its path towards regulating cryptoassets in the UK.