UK’s FCA proposes crypto rules to boost transparency, protect consumers, and balance innovation with regulation; consultation open until 2026. The United Kingdom has taken a new step toward regulating the fast-growing crypto sector. On Wednesday, the Financial Conduct Authority (FCA) released a consultation paper that sets out how the existing financial rules should apply to […] The post UK Regulator Proposes New Crypto Rules to Protect Consumers appeared first on Live Bitcoin News.UK’s FCA proposes crypto rules to boost transparency, protect consumers, and balance innovation with regulation; consultation open until 2026. The United Kingdom has taken a new step toward regulating the fast-growing crypto sector. On Wednesday, the Financial Conduct Authority (FCA) released a consultation paper that sets out how the existing financial rules should apply to […] The post UK Regulator Proposes New Crypto Rules to Protect Consumers appeared first on Live Bitcoin News.

UK Regulator Proposes New Crypto Rules to Protect Consumers

4 min read

UK’s FCA proposes crypto rules to boost transparency, protect consumers, and balance innovation with regulation; consultation open until 2026.

The United Kingdom has taken a new step toward regulating the fast-growing crypto sector. On Wednesday, the Financial Conduct Authority (FCA) released a consultation paper that sets out how the existing financial rules should apply to crypto companies. This is a significant step forward in the UK’s drive to develop a clear regulatory framework that is fair for digital assets.

FCA Proposes Transparency and Resilience Standards for Crypto

The FCA has expressed its desire for crypto companies to regulate themselves, while also requiring them to meet minimum standards, similar to those already in place for traditional financial institutions. These include rules on operational resilience, explain financial crime controls, and provide transparency in how businesses operate. As a result, crypto companies may be required to enhance their internal systems in order to keep up with these new expectations.

At the same time, the FCA is aware that Cryptocurrencies are not like other traditional assets. Therefore, it is asking for feedback on how it can apply its “Consumer Duty” rules to the crypto sector. This is a rule that advises companies to be in the same good and look for ways to treat their customers better and produce good results. The FCA wants to see what this duty can look like in a market in which prices are extremely volatile, and some products represent high-risk products.

Related Reading: UK and U.S. Strengthen Ties on Stablecoins and Blockchain | Live Bitcoin News

Additionally, the FCA is seeking views on how to handle crypto-related complaints. One crucial section of questions is whether consumers should be permitted to sue the Financial Ombudsman Service in case of complaints. Currently, most crypto users do not have the option of doing this. If the rules change, there may be more protection for customers if with things go wrong with a crypto service provider.

UK Regulator Seeks Input on Future Crypto Rules

David Geale, executive director at payments and digital finance of the FCA, stated that the aim is to craft a cloudy but robust crypto sector. They want to develop a sustainable and competitive crypto sector – balancing innovation, market integrity and trust, he stated. He also explained that although the new rules won’t get rid of the risks of crypto investing, it will ensure that firms adhere to common standards.

In addition, the FCA stressed that these changes will not occur overnight. The UK government is still working on legislation to formally place crypto under the purview and supervision of the FCA. In the meantime, the regulator is preparing the industry by asking for input and design appropriate guidelines. This consultation period provides an opportunity for businesses, consumers and many other stakeholders to help shape the final rules.

The move by the UK comes at a time where many countries are tightening regulations of cryptocurrencies. However, the FCA’s approach is to find a balance. On one hand, it attempts to give them protection to the consumers and the financial system. On the other hand, it wants to support innovation and ensure that UK-based firms can compete in the global market for crypto.

In conclusion, the FCA’s proposals are an important step towards ensuring that the UK is a safe and attractive place to be involved in cryptocurrency activity. If successful, the new rules could result in a more responsible and transparent industry-or a business industry in which businesses and consumers all benefit. The consultation is open until early 2026 and final rules are due to follow quite soon after.

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