The UK’s financial regulator has announced plans to upgrade its market monitoring capabilities and create cutting-edge analytics technologies.
Over the next twelve months, the Financial Conduct Authority (FCA) of the United Kingdom will concentrate on enhancing its capacity to identify and pursue cryptocurrency market abuse while also lending a hand in establishing a fair market abuse framework for the asset class.
The FCA has said that one of its objectives for the years 2024–2025 is to strengthen its regulations to prevent the misuse of the cryptocurrency market. Market integrity and abuse will be addressed by the regulator via enhanced intervention and monitoring mechanisms.
The financial regulator has also announced plans to further up its analytics capabilities, allowing for things like cross-asset class visualizations and network analysis.
The financial regulator has announced its plans to develop a crypto market abuse regime in addition to enhancing its capacity to monitor the sector.
The Financial Conduct Authority (FCA) has said that it would create the framework to “promote innovation to minimize industry costs,” which may seem like more red tape for crypto businesses operating in the nation.
In addition, the FCA has said that it will maintain its oversight of cryptocurrency companies’ public financial promotions. According to the regulator, it would enhance its technological skills in order to identify potentially harmful advertising materials for investors.
Investors will be better informed about frauds thanks to the regulator’s plans to launch consumer awareness programs.
The FCA introduced new regulations on the marketing of cryptocurrencies in October 2023. In order to help crypto enterprises operating in the UK comply with its crypto asset marketing restrictions, it issued instructions on how to do so on November 2nd.
This high-risk investment regulation is consistent with what is already in place, according to the regulator. There are still a lot of cryptocurrency companies breaking the law when it comes to advertising, even though it tried to clarify the new requirements.
The UK regulator said on February 15 that it had issued 450 notifications for unlawful cryptocurrency advertisements in 2023. It promised to punish rulebreakers and stressed that it would be cracking down on illicit crypto marketing efforts all the way until 2024.
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