The UK’s Financial Conduct Authority (FCA) released its Annual Report and Accounts for 2023-24, detailing significant regulatory progress in the cryptocurrency space. The report highlighted new rules to boost consumer protection, with over 87% of crypto registration applications either rejected, withdrawn, or refused due to non-compliance with anti-money laundering standards.
The FCA, responsible for regulating financial markets in the UK, has taken a proactive role in overseeing the crypto sector, ensuring firms meet its stringent standards for consumer protection and financial crime prevention.
Published last week, the report covers the financial year 2023-24. The new crypto marketing rules, which took effect earlier in 2024, were a major milestone in the FCA’s efforts to regulate the industry.
The FCA’s oversight primarily applies to firms operating within the UK, but the regulator is also involved in setting global standards through its collaboration with international financial bodies.
The regulatory actions aim to protect consumers from the risks associated with high-risk crypto investments and prevent financial crimes such as money laundering. By enforcing strict guidelines, the FCA hopes to reduce fraud and improve transparency in the cryptocurrency market, ensuring only compliant firms are authorized to operate.
The FCA introduced new marketing rules that classify cryptoassets as “Restricted Mass Market Investments.” These rules require a 24-hour cooling-off period for investors and mandate that firms ensure promotional materials are clear, fair, and not misleading. In the first three months of these rules going live, the FCA issued 450 consumer alerts against firms promoting crypto illegally.
Additionally, the FCA conducted multiple supervisory visits to high-risk firms and implemented new controls to strengthen anti-money laundering measures. The regulator has also been active on the global stage, collaborating with international organizations to establish consistent standards for crypto regulation worldwide.
The FCA’s continued focus on consumer safety, financial crime prevention, and global collaboration demonstrates its commitment to fostering a safer, more transparent crypto environment while maintaining a leadership role in shaping international regulations.
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