GBBC Responds to UK FCA Discussion Paper 24/4: Regulating Cryptoassets – Admissions & Disclosures and Market Abuse Regime for Cryptoassets

GBBC, with the help of our members, is pleased to have submitted a response to UK FCA Discussion Paper 24/4: Regulating Cryptoassets – Admissions & Disclosures and Market Abuse Regime for Cryptoassets.

We welcome the FCA’s initiative to establish a proportionate regulatory framework tailored specifically for cryptoassets. Our response emphasizes the unique challenges and dynamics of crypto markets, highlighting areas where traditional securities regulation may not be suitable. We stress the importance of proportionality in disclosure obligations, clarity on liabilities (particularly for exchanges in decentralized scenarios), and practical solutions for standardizing disclosures, including centralized FCA oversight or industry-led initiatives.

Key points include the necessity to address gaps around grandfathering existing cryptoassets without whitepapers, the potential role of classificatory frameworks for standardization, and recognizing distinctive market behaviours unique to cryptoassets when designing the market abuse regime. We also underline the importance of balanced on-chain and off-chain monitoring, while highlighting challenges like the free-rider problem in coordinated industry monitoring.

Read the full response here.

GBBC would like to extend its gratitude to the FCA for working with the industry and asking for comments on such critical topics. We would also like to thank our members and European Policy Analyst, Adrian Matak, for their contributions.