The United Kingdom’s Financial Conduct Authority (FCA) is seeking feedback on the regulation of cryptoasset trading platforms, saying clear regulation will boost confidence in the sector and boost its growth.
The FCA released a discussion paper Friday (May 2) and said in a press release that it will accept feedback until June 13. After considering this feedback, the regulator will propose potential rules later this year.
“Currently largely unregulated, we want to create a crypto regime that gives firms the clarity they need to safely innovate, while delivering appropriate levels of market integrity and consumer protection,” David Geale, executive director of payments and digital finance at the FCA, said in the release. “Our aim is to drive sustainable, long-term growth of crypto in the U.K. We’re asking whether we have got the balance right.”
The discussion paper covers intermediaries, staking, lending and borrowing, decentralized finance and the use of credit to purchase crypto, according to the release.
It is the latest policy publication in the FCA’s Crypto Roadmap, which also includes consideration of other areas in which there might be future regulation, such as market abuse and admissions and disclosures, stablecoins and custody, and prudential consideration, the release said.
The release of the paper also follows the publication of the FCA’s new five-year strategy that will see the regulator prioritize “smarter regulation,” supporting sustained economic growth, consumer education and fighting financial crime, per the release.
When it published its cryptocurrency regulation roadmap in November, the FCA said that by outlining a series of “focused consultations,” it aimed to make policy development transparent and help people participate by making the process more manageable and flexible.
The regulator said it would work with the government, international partners, industry and consumers to “get the future rules right.”
At that time, according to the FCA, 12% of U.K. adults owned crypto, 93% were aware of crypto, and 10% said they did not conduct any research before buying crypto.
It was reported Tuesday (April 29) that the British government plans to work with American officials to regulate the cryptocurrency industry and that the two countries will hold talks “to support the use and responsible growth of digital assets.”