The Financial Conduct Authority (FCA) of the United Kingdom has outlined its plans for the next year, with a specific focus on enhancing its capabilities in detecting and combatting market abuse in the cryptocurrency sector. The regulatory body aims to establish a proportionate market abuse regime for cryptocurrencies, while also improving its monitoring and intervention systems to address market abuse and maintain integrity.
In addition, the FCA intends to develop advanced analytics capabilities, such as network analysis and cross-asset class visualizations, to further enhance its oversight of the market. While these efforts may seem burdensome for crypto companies, the FCA aims to create a framework that supports innovation and reduces industry costs.
Furthermore, the FCA will continue to supervise the financial promotions released by cryptocurrency firms, utilizing its increased technological capabilities to identify any promotional material that may harm investors. The regulator also plans to launch consumer awareness campaigns to educate investors about potential scams.
The FCA has already implemented new rules for crypto-related marketing, and it recently issued guidance to assist UK-based crypto firms in complying with its crypto asset promotion rules. However, despite these efforts, many crypto firms are still in violation of advertising regulations. In 2023 alone, the FCA issued 450 alerts for illegal crypto ads. The regulator has emphasized its commitment to taking action against companies that breach the rules and will continue to combat illegal crypto marketing promotions in 2024.
Overall, the FCA’s plans for the next year reflect its dedication to maintaining a fair and secure crypto market while fostering innovation and protecting investors.