UK targets cryptocurrency market abuses with new regulatory framework
Key Takeaways
- The UK’s Financial Conduct Authority (FCA) plans to launch a new regime to tackle market abuse within the cryptocurrency industry, as part of its wider aim to protect consumers and maintain market integrity.
- The FCA plans to strengthen its market abuse detection capabilities using sophisticated analytical tools and is developing a cryptocurrency-related market abuse framework.
- Authorities also aim to raise investor awareness of fraud and plan to recoup the costs of expanding stablecoin regulation and financial promotion rules.
The UK Financial Conduct Authority (FCA) announced. We plan to implement a new regime to address market abuse within the cryptocurrency sector.
This initiative part of a wider agenda This is explained in . FCA’s Business Strategy of the Yearany aim Protects consumers, ensures market integrity, promotes effective competition and enhances international competitiveness..
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The regulator announced. We plan to strengthen our market abuse detection capabilities. It builds on sophisticated analytics tools such as network analysis and cross-asset class visualization. It also promised to establish A market abuse framework tailored to cryptocurrencies.
In addition, the authorities have the following plans: Expand efforts to increase public awareness of fraud; This will equip investors with the knowledge to identify and avoid fraud.
The business plan states:
We will recover costs of £6.2 million for new regulation and wider framework for stablecoins and £200,000 to expand our financial promotional reach.
However, the specific details of this financial recovery exercise remain secret.
The FCA is committed to creating a safe, transparent and competitive environment for cryptocurrency investors and stakeholders by setting a precedent for rigorous regulatory action.
This regulation represents an important step for the FCA, which is already active in the cryptocurrency regulatory space, particularly through the implementation of the promotional regime.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
With nearly 10 years of experience in the fintech industry, Aaron understands all of the biggest issues and challenges cryptocurrency enthusiasts face. He is a passionate analyst with an interest in data-driven and fact-based content, as well as content targeting both Web3 native users and industry newcomers.
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