UK regulator to step up measures against crypto market abuse

The UK's Financial Conduct Authority (FCA) will focus on increasing its capacity to detect and monitor market abuse in the crypto sector and deliver comparable market abuse to the asset class over the next 12 months.

In its 2024 to 2025 plan, the FCA listed strengthening its crackdown on crypto market abuse as one of its goals. The regulator will improve surveillance and intervention systems to cover market abuse and fraud.

The financial regulator said it will develop advanced analytical capabilities, including network analysis and cross-asset views.

In addition to improving its market surveillance capabilities, the financial regulator said it will work on crypto market abuse. The FCA wrote:

“We help market abuse for Crypto Assets and PISCES. [Private intermittent Share and Capital Exchange Service] Institution”

While the increase in regulations for the crypto space may seem like an additional headache for crypto companies established in the country, the FCA has stated that it will develop the framework to “support innovation to reduce industry costs”.

The FCA also stated that it will continue to monitor financial promotions published by crypto companies. The regulator said it will enhance its technological capabilities to identify promotional materials that may harm investors.

The regulator also said that it will conduct customer awareness campaigns to educate investors on fraud.

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In October 2023, the FCA implemented new rules for crypto-related transactions. In the year On November 2, it issued guidance to UK-based crypto companies on how to comply with the crypto asset promotion rules for crypto companies.

The regulator said the rules would be consistent with existing regulators for other high-risk investments.

Despite efforts to provide guidance on the new trading rules, many crypto companies are still violating advertising rules.

In the year On February 15, the UK regulator issued a warning for 450 illegal crypto ads in 2023 alone. He also indicated that he will continue to crack down on illegal crypto marketing promotions in 2024, saying that he will take action against companies that violate the rules.

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