The UK’s financial watchdog, the FCA (Financial Conduct Authority), is proposing some big changes to how crypto is handled in the country. They’ve put out a document asking for opinions on new rules, and one of the biggest is a possible ban on most public crypto offerings.
Cracking Down on Public Crypto Sales
The FCA’s main goal is to reduce risks in the crypto world while still letting the industry grow. Their proposal would basically stop most companies from publicly selling their crypto tokens unless they’re already properly registered in the UK or meet specific exceptions. The UK government is also pushing for this ban, with only a few exceptions planned.
This isn’t just happening in the UK. Many countries are trying to get a better grip on unregulated crypto offerings because they’re often linked to scams and market manipulation. The FCA’s already taken action against a Solana-based platform, Pump.fun, for not having the right permits.
More Than Just a Ban
The FCA isn’t just focused on banning public offerings. They also want crypto trading platforms to share information about suspicious activity to help catch bad actors and keep things safer for everyone. They’re also asking for feedback on other areas like how crypto companies are allowed to operate and how to deal with market manipulation. They’ve given everyone until March 14, 2025, to share their thoughts. Other European countries are also working on similar rules, especially regarding taxes.
Balancing Protection and Innovation
This is all part of a larger plan to create a clear set of rules for crypto in the UK by 2026. This push for stricter rules comes at a time when many UK crypto companies aren’t following anti-money laundering (AML) rules – a recent report says almost 90% are failing to comply. The FCA is also keeping a close eye on things like TikTok, investigating claims that it’s illegally operating as a crypto trading platform.
Even with these new regulations, crypto is still popular in the UK, with around 7 million adults owning digital assets. The FCA wants to protect people, but they also need to be careful not to drive crypto businesses away to other countries with more relaxed rules, especially with the US potentially becoming more crypto-friendly.
At the time of writing, Bitcoin is trading at $105,998.
