UK FCA Proposes Ban On Public Crypto Offers For Non-Regulated Entities

A new proposal by the Financial Conduct Authority (FCA) of the UK to crack the crypto industry by banning the issuance of public crypto offerings by non regulated entities is all set. It comes after restrictions in a new report unveiled bans on unsolicited crypto promotions to UK citizens today.

The FCA’s Discussion Paper DP24/4 is making the rounds. It outlines several new dos and don’ts in its latest drive to corner the crypto market. Other measures include extending the ban on crypto promotions (first introduced to stop crypto companies from targeting potential customers with unregistered promotions). With this paper, the FCA is making the path to forbearance for non-regulated firms’ public offers of crypto assets even tighter.

At a time when fraud market manipulation continues to be at the forefront of mind, this new framework, aimed at market integrity and consumer protection in a sector ripe for such conditions, is timely. The FCA, however, has said that it would also strengthen types of controls proposed in legislation to ensure no harm would be done, for example, enforcing that market abuse was stopped and disclosure standards were strong.

In its statement, the FCA added that our Discussion Paper is one of a set of publications ‘helping us shape UK’s crypto regime.’ The regulator has sought input into the proposal, starting with the crypto industry over market entry regulations and market abuse.

Most public crypto offers will be outlawed, except for some exceptions, which include crypto asset trading platforms that already exist or are under exceptions. Nevertheless, how these exceptions will be regulated is unclear, and only those firms meeting very strict criteria will be allowed to obtain them.