The U.K. intends to prohibit public offers of crypto, the Financial Conduct Authority said in its paper on the incoming crypto regime on Monday.
Legislation will be put in place to prohibit public offers of crypto, building on the U.K.'s promotion rules that prevent unregistered crypto firms from reaching out to U.K. clients . Only crypto asset trading platforms and offers qualifying for exemptions may not be subject to this.
CoinDesk reached out to the Treasury for input on whether or not this only applies to regulated companies as the FCA could not comment on this.
The paper asks for industry input on its market admission and disclosures as well as market abuse regime and is one of many more papers to come from the regulator as it prepares for its crypto regime.
The FCA is the U.K.'s regulator in charge of overseeing financial activities in the country including crypto. It has been watching over the sector and seeing how it will comply with its money laundering rules since 2020 but it plans to put in place a new regime in 2026 following the implementation of draft regulation that is coming out next year.
It will need industry feedback on how it can ensure consumers have the necessary information to make informed decisions as well as on their plans to reduce fraud via the market abuse regime.
Read more: Matthew Long: The UK’s Crypto Gatekeeper