FCA Implements Stricter Oversight on UK Crypto Market

The UK Financial Conduct Authority (FCA) is set to implement a market abuse regime for crypto assets this year. The initiative aims to mandate all participants in this sector to actively identify and prevent any instances of abuse, including market manipulation and insider dealing.

This move aligns with the FCA’s strategic goals outlined in its 2024/2025 plan, prioritising consumer protection, market integrity, and facilitating international competitiveness.

The forthcoming regulations will apply to both individuals and legal entities engaged in crypto activities, regardless of whether they operate within the UK or abroad. The FCA emphasised that criminal offences related to market abuse will be rigorously prosecuted, carrying penalties that may include imprisonment. Moreover, sanctions for market abuse will apply not only in the UK, but also in the territory of the EU member states.

Presently, the FCA has introduced a specialised regime for crypto mandating the warning of customers about risks and a 24-hour cooling-off period for first-time crypto buyers. Furthermore, in its 2023 report, the regulator informed of the closure of 450 crypto firms operating without appropriate permits that were offering services to British citizens.

The FCA also stated that they will continue scrutinising promotions disseminated by crypto companies to identify materials potentially detrimental to investors.

Previously, in response to the enactment of new cryptocurrency regulations, Binance suspended the registration of new users from the UK.

In February of this year, Banxa, a payment partner of Binance, was included in the FCA register of crypto companies. The platform facilitates fiat payment processing for Binance customers, conducting identity verification and all transactions.