Watchdog asks for crypto industry feedback on UK investment reforms

The UK's Financial Conduct Authority (FCA) has released discussion and consultation papers seeking feedback from the digital asset industry on proposed policy changes aimed at boosting the UK's investment culture. The proposals focus on expanding consumer access to investments and amending rules regarding client categorization and conflicts of interest. The FCA noted that poor performance on high digital engagement apps was largely attributable to trading in cryptoassets and contracts for difference, highlighting risks associated with cryptoasset proxies lacking investment limits or appropriateness tests. Specifically, the watchdog proposed guidance stating that a personal investment history mainly in speculative, high-risk, or leveraged products, including crypto assets, is generally not sufficient evidence for professional client capability unless other factors strongly support it. These changes aim to streamline existing guidelines and shift more responsibility onto firms to ensure compliance.

(Source：Cointelegraph)