By crypto.news | Created at 2024-11-26 14:10:01 | Updated at 2024-11-26 16:41:02
2 hours ago
The United Kingdom Financial Conduct Authority plans to finalize regulations for the crypto industry by 2026, following input from organizations such as the Treasury, Bank of England, and U.S. Securities and Exchange Commission
According to a Bloomberg report on Nov. 26, the FCA develop rules to address market abuse, regulate trading platforms, lending, and stablecoins among others.
The regulatory agency plans to begin consultations and discussions by late 2024, aiming to prevent the UK from falling behind other nations like the U.S and Hong Kong.
“We’ve had many, many good conversations recently with industry about how we’re going to learn from regulation around the world,” said Matthew Long, the FCA’s Director of Payments and Digital Assets, in an interview with Bloomberg TV.
A blogpost on the FCA website detailed that feedback was collected from over 100 organizations spanning the crypto industry and traditional finance sectors.
These include crypto exchanges, banks, trading firms, blockchain analytics companies, and regulatory bodies like the Treasury, Bank of England, and the SEC.
The SEC has faced criticism for its harsh stance on crypto. Throughout SEC Chairman Gary Gensler’s tenure, the SEC initiated a record 46 enforcement actions against crypto-related entities in 2023 alone, including major crypto firms like Binance and Bittrex.
In the FCA blogpost, Long stated that cracking down on market abuse lies “at the heart of ensuring financial markets run efficiently and investors can make informed decisions,” expressing a desire to understand how it manifests in the crypto market and how to properly combat it through regulatory framework.
However, he also emphasized a need to create a fair, orderly and transparent ecosystem for crypto traders and other players involved in the industry. Long said that there is still a lot of work to be done but they are making progress with discussions and roundtables regularly held with the Treasury and crypto industry players.
“Ultimately, we want our regime to consider the unique characteristics of crypto and deliver in the best interests of the client,” said Long.
The FCA’s data shows that at least 12% of the UK’s adult population owns crypto, up 10% from previous findings. Crypto awareness in Great Britain has also risen from 91% to 93%, highlighting growing adoption.
“Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK,” said Long.
