Crypto Sector Consulted on FCA Plans to Reform UK Investment Protections

The UK’s Financial Conduct Authority has launched a consultation on proposed reforms to investment regulations, directly seeking input from the cryptocurrency industry as a key stakeholder.

Released on Monday, the FCA’s discussion and consultation papers ask digital asset firms to provide feedback. The proposals focus on two main areas: expanding the range of investments available to consumers and amending rules related to how firms classify clients and manage conflicts.

The discussion paper cited evidence that poor outcomes on digital trading platforms were almost entirely due to activity in cryptoassets and leveraged products. It flagged the risks of instruments that provide cryptoasset exposure without applying the standard consumer protections mandated for regulated investments.