Key Points:

• The U.K. plans to prohibit public offers of cryptocurrencies as stated by the Financial Conduct Authority (FCA).
• Last year, the U.K. enacted promotional rules to prevent domestic firms from soliciting U.K. clients.

The U.K. intends to ban public offers of crypto, according to a paper released by the Financial Conduct Authority (FCA) regarding the upcoming regulatory framework on Monday. Legislation will be introduced to restrict public crypto offerings, further developing the U.K.'s promotional regulations that limit outreach by unregistered crypto firms to U.K. clients. Only specific trading platforms and exempt offers will evade this new rule.

CoinDesk has consulted the Treasury about whether this applies solely to regulated entities, as the FCA refrained from commenting. Moreover, the paper calls for industry feedback concerning market admissions and disclosures alongside the market abuse regulatory framework. This document is part of several forthcoming papers from the regulator as it establishes its crypto framework.

As the U.K.'s financial supervisory body, the FCA has been monitoring the sector since 2020 to ensure compliance with money laundering regulations and is aiming for a new regime by 2026, following the release of draft regulations next year.

Read more: Matthew Long: The UK’s Crypto Gatekeeper