UK regulator to tighten measures against crypto market abuse
Ezra Reguerra10 hours agoUK regulator to tighten measures against crypto market abuseThe United Kingdom’s financial watchdog said it will improve its market monitoring abilities and develop advanced analytics systems.5310 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe U.K."s Financial Conduct Authority (FCA) will focus on increasing its capabilities in detecting and pursuing market abuse in the crypto sector and assisting in delivering a proportionate market abuse regime for the asset class in the next 12 months.The FCA listed its goals for the next 12 months. Source:FCA
In its plans for 2024 to 2025, the FCA listed tightening its measures against crypto market abuse as one of its goals. The regulator will improve monitoring and intervention systems to cover market abuse and integrity.
The financial watchdog also said it will develop advanced analytics capabilities, including network analysis and cross-asset class visualizations.
Apart from improving its market monitoring ability, the financial regulator also said that it will work on a market abuse regime for crypto. The FCA wrote:“We will assist in delivering a proportionate market abuse regime for Crypto Assets and the PISCES [Private intermittent Share and Capital Exchange Service] facility.”
While adding regimes for the crypto space may seem like an additional headache for crypto companies based in the country, the FCA said that it will develop the framework to “support innovation to lower industry costs.”
The FCA also said that it will continue supervising the financial promotions published by crypto firms. The regulator said it will increase its tech capabilities to detect promotional material that may harm investors.
The regulator said that it will also develop its consumer awareness campaigns to educate investors on scams.
Related:UK regulations will allow stablecoins and CBDCs to coexist, says former BoE fintech lead
In October 2023, the FCA implemented new rules for crypto-related marketing. On Nov. 2, it released guidance for UK-based crypto firms on how to comply with its crypto asset promotion rules to assist crypto firms in compliance.
The regulator said the rules align with existing regulators for other high-risk investments.
Despite its efforts to provide guidance on the new marketing rules, many crypto firms are still violating advertising regulations.
On Feb. 15, the U.K. regulator said that in 2023 alone, it had issued 450 alerts for illegal crypto ads. It said it would take action against companies that breach the rules and highlighted that it will continue taking action against illegal crypto marketing promotions in 2024.
Magazine:South Africa’s digital-nomad crypto hub: Cape Town, Crypto City Guide# Cryptocurrencies# Business# United Kingdom# RegulationAdd reactionAdd reactionRead moreBlackRock begins asset tokenization with launch of digital liquidity fundSuper PAC tried to ‘bury a conversation’ on crypto with attack ads — Rep. Katie PorterSpot Bitcoin ETFs hit negative flows as GBTC sheds $642M in a day