UK Regulator Considers Restrictions on Public Crypto Offerings

The UK’s Financial Conduct Authority (FCA) is proposing to restrict public offerings of crypto assets outside specialized trading platforms.

Clear admissions, disclosures and market abuse rules will help improve the integrity of our crypto markets, while protecting people and supporting the UK’s growth and competitiveness.

Find out more https://t.co/zB3e0xXkti#crypto #CryptoRegulation #FinancialRegulation

— Financial Conduct Authority (@TheFCA) December 16, 2024

The ban includes exceptions, such as offerings through trading platforms and limited sales to qualified investors.

Permitted offerings will be subject to reporting standards. The regulator proposes requiring exchanges to independently verify the accuracy of information provided by asset issuers. Authorized sales to qualified investors will necessitate the disclosure of necessary data to all buyers.

The FCA is gathering industry feedback on this and other aspects of the future regulatory regime in the UK. According to officials’ plans, new laws will be prepared by 2026.

Opinions on this proposal package are being accepted until March 14, 2025.

“The discussion paper reflects ideas developed during a series of cryptocurrency roundtables led by the FCA, which we conducted with industry participants earlier this year […]”, the authors emphasized.

In the first half of 2025, regulators intend to develop and discuss rules for stablecoins, DeFi, and custodial services with industry participants.

Earlier in December, UK financial regulators requested data from companies under their supervision about their current and future investments in crypto assets.