UK regulator intends to ban the public offers of crypto assets

The initiative is part of the upcoming crypto regulatory regime

16.12.2024 - 15:15

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3 min

What’s new? The UK’s Financial Conduct Authority (FCA) has unveiled a draft of a new cryptocurrency regulatory regime that would ban public offers of digital assets. The document is based on the financial services promotion rules, under which marketing activities are prohibited for unregistered crypto service providers.

Material by CoinDesk

What else is known? The document is designed to regulate the procedure for admitting crypto companies to the market and establish liability measures for market manipulation. It is part of the regulator’s wider initiative to introduce a regulatory framework for the digital asset sector in 2026.

The FCA is responsible for overseeing financial activities, including cryptocurrency. Officials addressed the industry on how they can ensure consumers have the information they need to make informed investment decisions, as well as their plans to combat fraud.

Overall, the FCA has a reputation for being a strict regulator; last year, officials at the department approved only 4 out of 28 applications for crypto licenses.

Bitget re-enters the UK market under FCA rules

The platform closed access to the website for local customers in May this year

In April, the UK began exploring digital securities as part of a regulatory sandbox overseen by the central bank and the FCA.

In September, the Wallet app for Telegram temporarily stopped serving customers in the UK, citing the need to register with the FCA.

In November, a former Binance employee in London went to court over her dismissal after telling of corruption within the company. At the same time, the head of deVere Group called on the UK to create a bitcoin reserve.

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