Regulations
By Sydney TheCMO
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The UK's Financial Conduct Authority (FCA) seeks feedback on new rules aimed at cryptoasset firms.
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The FCA has outlined a framework addressing several key areas, including the application of the Consumer Duty to crypto firms.
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However, not everyone agrees with this direction. Critics argue that excessive regulation could stifle innovation. Yet, the FCA maintains that a balance is necessary.
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The timing matters. September 2026 may seem distant, but preparations are essential now.
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The proposed regulations align with those of traditional finance sectors. The FCA emphasizes clarity for consumers and flexibility for firms—critical components for a market…
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Here's what changed: The draft legislation recently released by the Government underscores the urgency and necessity of these regulations.
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Key proposals include extending the Consumer Duty to cryptoasset firms through non-Handbook guidance, ensuring they're equipped to serve retail customers effectively.
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Conduct of Business Standards (COBS) will now apply to cryptoasset activities. This move intends to enforce transparent and fair trading practices across the board.
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Training standards won't be left behind either. Firms must ensure their staff possess adequate knowledge and skills to manage crypto services effectively.
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Regulatory reporting requirements are also revamped under SUP 16 guidelines. Reporting data becomes crucial as it allows better supervision and risk monitoring by authorities.
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Cryptoasset safeguarding gets attention too; proposed rules aim at protecting interests when multiple regulated activities occur within one firm—particularly concerning custody…
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Retail collateral treatment during borrowing is another area under scrutiny. It seeks to protect consumer interests when they engage in such transactions—a novel approach not…
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Finally, location policy guidance clarifies expectations about where cryptoasset firms should base their operations, ensuring effective regulatory oversight.
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Nobody responded immediately from major industry associations regarding these proposals. However, individual companies have started analyzing potential impacts on their…
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For stakeholders expecting sweeping changes overnight? Not anymore.
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