UK to ban public crypto offers in incisive new regulatory climate

A new article by the UK’s financial watchdog puts the brakes on the crypto industry; Effectively banning the publication of crypto offerings by unregulated entities.

In a new report published on December 16, the UK’s financial authority outlined new directives for the crypto industry.

UK FCA set to outlaw public crypto offerings

This is a significant move that builds on promotion and advertising restrictions last year that prevented unregistered crypto assets from contacting UK customers.

“Our Discussion Paper DP24/4 (Admissions, disclosures and market abuse regime for crypto assets) is part of a series of publications designed to help us shape the UK’s crypto regime,” the FCA said.

As part of the proposed legislation, the government plans to “prepare proposals for firms to put in place strong controls to prevent harm” and wants a public consultation on the new proposed rules. “We also recommend that some firms, such as authorized crypto trading platforms, share information with each other to help stop suspected market abuses.”

Future legislation aims to further tighten these controls by disallowing public crypto offerings, possibly with exceptions for established trading platforms or under certain regulatory exemptions.

The FCA’s document invites feedback from the crypto industry on critical areas such as market entry protocols, disclosure requirements and mechanisms to combat market abuse.

The new regulatory clarity is part of a wider series of consultations as the FCA prepares for a comprehensive crypto regulatory framework that is expected to be fully implemented by 2026, following the introduction of draft regulations next year.

The FCA, tasked with regulating financial activity across the UK, including the burgeoning crypto sector, has been monitoring compliance with anti-money laundering laws since 2020.

Future regulations aim to improve consumer protection by ensuring investors have sufficient information to make educated investment decisions and by strengthening safeguards against fraudulent activity through a robust market abuse framework.

The FCA is inviting a public consultation on the new rules by March 2025.