The British regulator is adopting a stricter approach and with global collaboration, through which it seeks to establish a safer and more transparent framework for investments in cryptoassets.
The regulator also highlighted its supervisory actions within the broader financial sector.
Courtesy: Forbes.com
The UK Financial Conduct Authority (FCA) has stepped up its efforts to combat fraud and improve consumer protection in the cryptocurrency sector. This, it says, has already yielded its first results.
In its latest annual report, the regulator revealed that More than 87% of cryptocurrency-related applications were rejected, withdrawn or denied, evidencing a stricter approach to ensure that companies comply with regulations. This report also introduces new regulations for the promotion of cryptoassets, which aim to prevent fraud and protect investors.
Among the measures adopted, the FCA highlighted the issuance of 450 warnings to consumers about illegal cryptocurrency promotions in the first months of 2024.
Cryptocurrencies in the UK
In addition, stricter marketing rules were implemented, such as a 24-hour cooling-off period for investors, and the classification of cryptoassets as “Restricted Mass Market Investments.” These regulations seek to ensure that promotions are clear and not misleading, protecting consumers from unnecessary risks.
cryptocurrencies-bitcoin
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The regulator also highlighted its supervisory actions within the broader financial sector. Since April 2023, the FCA has conducted numerous supervisory visits and implemented additional controls on high-risk firms, all with the aim of improving fraud detection and reducing money laundering in the financial sector.
As part of its global approach, the FCA remains committed to working with international bodies to establish regulations that harmonise industry standards worldwide.
Source: Ambito
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