As part of the U.K.’s ongoing efforts to develop a regulatory regime for the crypto sector, the Financial Conduct Authority (FCA) is consulting on proposed registration, disclosure and conduct rules.
The FCA issued a discussion paper today seeking feedback on rules for guarding against market abuse in the sector, including proposals for strong internal controls, and information sharing among registered crypto trading platforms to detect and address suspected abuse.
“Admissions and disclosures and market abuse regimes are crucial to improving the integrity and cleanliness of our crypto markets, as well as helping people make informed financial decisions,” the FCA said in a release.
“This will reduce fraud and help promote good practices in the sector,” it said.
The paper published today is the first in a series of consultations that the FCA intends to engage in as it develops the U.K.’s crypto regime.
Last month, the U.K. government confirmed its intention to propose legislation that will bring the crypto sector under the FCA’s oversight.
The FCA said that its goal is to develop, “a balanced regime that addresses market risks without stifling growth.”
“The regime will look to reduce and prevent financial crime, protect and put consumers’ needs first [and] maintain market integrity while supporting the use of technology to help strengthen the U.K.’s growth and competitiveness,” it said.
In particular, the regulator said that it’s aiming to improve regulatory clarity, introduce stronger safeguards via registration requirements, reduce the risks of fraud and money laundering and improve the allocation of capital in the crypto sector by enhancing investor decision-making.