UK’s FCA Proposes Tighter Crypto Regulations to Mitigate Market Risks

The
Financial
Conduct
Authority
(FCA),
the
UK’s
financial
regulatory
body,
has
proposed
implementing
stricter
regulations
on
the
cryptocurrency
market.
This
move
aims
to
mitigate
risks
associated
with
digital
assets
and
could
result
in
banning
unlicensed
companies
from
issuing
public
cryptocurrency
offers.

Proposed
Regulatory
Measures

The

FCA
released
a
discussion
paper
on
December
16,
outlining
plans
to
prohibit
non-regulated
entities
from
conducting
public
crypto
offerings.
The
proposed
measures
are
designed
to
ensure
that
cryptocurrency-related
promotions
comply
with
established
financial
laws
and
prioritize
consumer
protection.

According
to
the
FCA,
the
proposed
regulations
include
requiring
authorized
firms,
such
as

licensed
crypto
trading
platforms,
to
share
information
and
implement
robust
monitoring
systems
to
detect
and
prevent
suspicious
activities.
“We
are
also
suggesting
certain
firms,
like
authorized
crypto
trading
platforms,
share
information
with
each
other
to
help
stop
suspected
market
abuse,”
stated
the
FCA.

Recent
FCA
Actions
and
Warnings

To
refine
these
proposed
measures,
the
FCA
has
invited
feedback
from
the
public
and
industry
stakeholders.
The
consultation
period
is
open
until
March
2025.
This
initiative
forms
part
of
a
broader
effort
to
establish
a
comprehensive
regulatory
framework
for
the
UK’s

cryptocurrency
market
by
2026.

The
FCA
has
already
taken
steps
to
enforce
its
regulatory
authority.
On
December
3,
the
regulator
restricted
access
to
Pump.fun,
a
platform
suspected
of
offering
unauthorized
financial
services.
The
FCA
warned
that
such
platforms
could
pose
significant
risks
to
UK
consumers.

Existing
Crypto
Regulations
in
the
UK

The
FCA’s
recent
proposals
build
on
earlier
regulations
introduced
in
2023,
which
banned
unregistered
crypto
companies
from
marketing
or
promoting
their
services
to
UK
residents.
Since
2020,
the
FCA
has
closely
monitored
compliance
with

anti-money
laundering
(AML)
regulations
in
the
cryptocurrency
sector.

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

Market
Risks
and
Global
Context

A
recent
industry
report
highlighted
that
the
UK
ranks
among
the
top
countries
affected
by
crypto
scams
and
failed
projects,
accounting
for
7%
of
global
crypto-related
scams
between
January
2022
and
October
2024.
The
report
emphasized
that
rapid
market
expansion
in
regions
like
the
UK
often
creates
opportunities
for
fraudulent
schemes,
underscoring
the
need
for
stringent
regulatory
frameworks.

The
UK
government
sees
these
proposed
crypto
regulations
as
vital
to
fostering
a
safer
investment
environment.
According
to
the
FCA,
the
new
rules
are
intended
to
“set
out
proposals
for
firms
to
introduce
strong
controls
that
prevent
harm.”

Flockerz:
A
New
Community-Focused
Cryptocurrency

Flockerz
has
emerged
as
a
promising
contender
in
the
meme
coin
market
by
emphasizing
community-driven
principles
through
a
well-designed
decentralized
autonomous
organization
(DAO)
and
a
reward-based
ecosystem.

The
cryptocurrency
stands
out
with
its
unique
mascot—a
group
of
blue
hens
with
lazy
eyes
engaged
in
quirky
antics—which
symbolizes
its
commitment
to
decentralization
within
the
meme
coin
economy.
According
to
its
whitepaper,
the
current
PVP
meme
coin
ecosystem
faces
monopolistic
control,
causing
significant
financial
losses
for
investors.

To
address
these
challenges,
Flockerz
introduced
FlockTopia,
a
DAO
designed
not
only
to
give
holders
voting
power
over
the
project’s
future
but
also
to
reward
them
through
a
Vote-to-Earn
system.
This
innovative
approach
allows
participants
to
earn
incentives
while
shaping
the
project’s
development.

The
Vote-to-Earn
model
could
attract
more
long-term
investors
by
promoting
token
retention,
thereby
enhancing
the
token’s
stability.
Additionally,
25%
of
the
total
token
supply
is
allocated
for
staking
rewards,
offering
further
incentives
for
community
engagement
and
participation.
Individuals
interested
in
becoming
part
of
this
growing
ecosystem
can
find
more
information
at
flockerz.com.

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