The UK’s Financial Conduct Authority (FCA) has announced initiatives aimed at boosting the country’s investment culture, requesting the cryptocurrency sector’s feedback on new policy proposals. In documents released on a Monday, the FCA invited crypto firms to share their thoughts on strategies designed to broaden consumer access to investments and adjust client categorization rules, as well as tackle conflicts of interest.

FCA Proposals Source: FCA

The FCA indicated that most of the underperformance linked to high engagement apps can be attributed to trading in crypto assets and contracts for difference. The consultation paper raised awareness about the potential dangers for consumers utilizing “crypto asset proxies” absent of investment limit warnings or assessments.

“We will also add guidance that a personal investment history mainly in speculative high risk or leveraged products or crypto assets is not usually an indicator of professional capability, unless there is strong evidence that the client meets the threshold of a professional client from other Relevant Factors, including the client’s ability to bear potential losses.”

Translation: “We will also add guidance that a personal investment history mainly in speculative high risk or leveraged products or crypto assets is not usually an indicator of professional capability, unless there is strong evidence…”

The proposals aim to refine existing FCA guidelines, potentially eliminating arbitrary tests and granting firms greater responsibility to ensure compliance.

Responses from companies involved in advising clients on or selling digital assets are requested by February and March.

The UK has recently positioned itself as a robust hub for crypto businesses outside the U.S., which many industry leaders had described as an uncertain regulatory landscape prior to recent policy shifts under former President Donald Trump.

In December, a law was enacted in the UK that recognizes digital assets as property, providing clarity on cryptocurrencies such as Bitcoin in instances involving the recovery of stolen assets or insolvency proceedings.

Amidst the ongoing expansion of the market, reports reveal the UK government is contemplating a ban on crypto donations to political parties.