FCA outlines approach to crypto regulation

Earlier this year, the FCA hosted roundtables with over 100 organisations, including crypto exchanges, banks, trading firms, and regulators including the Treasury, Bank of England, and U.S. Securities and Exchange Commission, to discuss key aspects of the future crypto regime.

Key themes from the discussions include:

• Admissions and Disclosures: Participants emphasised the need for a proportionate, industry-led framework tailored to different business models. Challenges surrounding decentralised cryptoassets were highlighted, with platforms needing to rely on public information in the absence of issuers.
• Market Abuse Regulation: Discussions showed the importance of aligning crypto market abuse rules with traditional finance while addressing the unique characteristics of crypto markets. Participants highlighted cross-jurisdictional challenges in data privacy and varying approaches to disclosures.
• Trading Platforms and Intermediaries: Stakeholders supported strong systems and controls for trading platforms, emphasising operational resilience and addressing conflicts of interest. Distinctions between retail and wholesale markets and metrics for “best execution” were key points.

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