UK Regulator to Crack Down on Crypto Market Abuse

The Financial Conduct Authority (FCA) in the UK has outlined its plans for the next year, with a focus on detecting and combating market abuse within the cryptocurrency sector. The FCA aims to tighten its measures against crypto market abuse and enhance its monitoring and intervention systems to ensure market integrity. The regulator plans to develop advanced analytics capabilities, including network analysis and cross-asset class visualizations. The FCA also aims to establish a market abuse regime specifically for crypto assets, working in collaboration with the Private Intermittent Share and Capital Exchange Service (PISCES). This is intended to support innovation and reduce industry costs for crypto companies.

The FCA will continue its supervision of financial promotions published by crypto firms, bolstering its technological capabilities to detect potentially harmful promotional material. The regulator is also committed to increasing consumer awareness and education campaigns to protect investors from scams. In October 2023, the FCA introduced new rules for crypto-related marketing and released guidance for UK-based crypto firms on compliance with these regulations. Despite these efforts, many crypto firms are still violating advertising rules, and in 2023 alone, the FCA issued 450 alerts for illegal crypto ads. The regulator has pledged to take action against companies that breach the rules and will continue cracking down on illegal crypto marketing promotions in the coming year.