Today, we submitted our response to the Financial Conduct Authority’s Discussion Paper 24/4 – Regulating Cryptoassets: Admissions & Disclosures and Market Abuse Regime 👉 https://buff.ly/wTCQc4n
This response reflects months of in-depth discussions and collaboration with a group of our members, alongside invaluable input from our industry partners. We extend our sincere thanks to CMS UK for their insights and ongoing support, as well as to our members who contributed their expertise: Solidus Labs, Zumo, Eunice, Vault12, OKX, Xcavate Protocol, CurveBlock, Plenitude Consulting, OANDA/Coinpass, fscom, B2C2, CryptoMondays London, Keyrock, Hill Dickinson LLP, Sumsub, Forefront Advisors, Taylor Wessing, 1 Crown Office Row, WhiteBIT, and Socios.com.
Key recommendations and concerns:
🔹 Admissions & Disclosures (A&D): A robust, reliable, and accessible process will maximise competition and economic growth while promoting responsible market participation.
🔹 Proportional Regulation: The Discussion Paper should better reflect the UK’s innovation and growth objectives, avoiding overregulation that may restrict the industry. A tailored approach is needed, especially for smaller and emerging firms.
🔹 Industry-Led Solutions: We support collaboration between the public and private sectors but seek clarity on operational dependencies that could affect efficiency and effectiveness.
🔹 Liability of Cryptoasset Trading Platforms (CATPs): We request a review of what we see as disproportionate levels of responsibility and liability applied to CATPs.
🔹 Global Competitiveness: A cross-jurisdictional comparison is essential to ensure UK requirements are not more restrictive than other markets, which could impact competitiveness and consumer access.
🔹 Clarity and Accessibility: Processes should be straightforward, avoiding excessive reliance on complex legal drafting or external regulations that make compliance challenging for non-specialists.
🔹 Standardised Disclosures: Basic cryptoasset information should follow internationally agreed industry standards and be accessible via a central repository.
🔹 Research on Cryptoasset Valuation: The FCA should commission research from leading universities or think tanks to inform policies on data collection, due diligence, and insider lists.
🔹 Regulatory Support: While the private sector can propose solutions, the regulator must provide clear guidance and actively support industry-led initiatives.
Read our full response 👉 https://buff.ly/wTCQc4n