Laura WilesThe FCA is seeking comments on its approach to cryptoasset Admissions and Disclosures, and the Market Abuse Regime for cryptoassets (MARC).
In November 2024, the government confirmed it will proceed with legislation to bring cryptoassets into the FCA’s regulatory perimeter. Its plans are in close alignment with proposals set out by the previous government, but importantly, will no longer follow a ‘phased approach’: fiat-reference stablecoin activities (previous under ‘phase 1’) and crypto trading, exchange and other activities (previously under ‘phase 2’) will be legislated for simultaneously.
The FCA intends to use feedback to inform the development of a balanced regime which addresses market risks without stifling growth. On the overall cryptoasset regime, the FCA will be guided by the following outcomes, but acknowledges that there may be trade-offs between them:
- Strategic outcomes:
- Consumer protection
- Market integrity
- Effective competition
- International competitiveness and growth
- Sustainable system
- Accessibility
- Outcomes of regulation:
- Crypto not being attractive for money laundering, fraud, terrorism or any other criminal activity.
- Regulated firms/market infrastructure conducting cryptoassets services understanding the risks (including to traditional finance), the regulation, the market, their customers, and design their products and/or services to achieve the above strategic outcomes.
- Users getting communications they can understand, products and services that meet their needs and offer fair value. Also, users getting the customer support they need, when they need it.
- The benefits and positive use cases for crypto and its underlying technology being understood by market participants. Innovation being permitted or encouraged in line with appropriate regulation to enable crypto and its underlying technology to be developed and exploited, while also looking to mitigate any risks.
The call for feedback closes on 14 March 2025.