The UK regulator, the Financial Conduct Authority (FCA), has published an analytical document outlining new rules for the cryptocurrency market. This document opens up opportunities for discussing important topics such as DeFi, staking, and the activities of intermediaries.
This is reported by Finway
The FCA invites all interested parties, including companies and experts, to share their thoughts and proposals by June 13. The new legislation is expected to cover all major crypto operations that will fall under FCA regulation.
The UK Treasury recently made amendments to the Financial Services and Markets Act, clarifying the legal status of staking, highlighting the importance of this issue.
“The crypto industry is rapidly evolving but remains almost unregulated. We aim to create a framework that provides clarity for innovative companies while ensuring an appropriate level of market and consumer protection,” said David Gill, FCA’s Executive Director for Digital Finance and Payments.
Key highlights of the discussed document include:
- focus on market integrity, consumer protection, and innovation;
- analysis of DeFi platforms and lending mechanisms in the crypto space;
- requirements for crypto exchanges, particularly regarding the structure of branches and subsidiaries;
- issues related to purchasing cryptocurrencies on credit, which is part of the FCA’s efforts to prevent financial misconduct.
The public consultation will run until June 13, 2025, after which the FCA will analyze all feedback and publish the final version of the regulation. This process is part of the FCA’s five-year strategy (2025-2030), which aims to:
- provide smart regulation to support economic growth;
- assist consumers in financial decisions;
- combat financial crime.
It is worth noting that at the end of December 2024, the platform pump.fun ceased operations in the UK following a warning from the FCA.