According to a recent statement from the UK’s financial regulator, public offerings of crypto currencies may soon be banned. The government recently banned a popular meme coin platform. These trends point to a new regulatory environment for 2025.
The UK Plans to Ban Crypto Asset Offerings
The UK’s Financial Conduct Authority (FCA) is planning to ban public offerings of crypto assets as part of new crypto regulations. The promotional rules that came into effect last year have already blocked unregistered crypto firms from reaching customers in the UK. This new law will not apply to crypto exchanges or certain exemptions for offerings.
The FCA report is seeking industry views on market acceptance, transparency, and market abuse prevention regimes. The FCA, which has long regulated the sector with anti-money laundering rules, is also preparing draft regulations for the new crypto regime set to be implemented by 2026. The goal is to enable consumers to make informed decisions and to prevent fraud through sector collaboration.
The UK Parliament Issues a Warning on These Altcoins!
The FCA is collecting feedback to improve the transparency of the UK’s crypto markets. It emphasizes that open regulations will support the UK’s growth, competitiveness, and user protection.
In the new “Discussion Paper DP24/4”, the FCA proposes that firms apply strong controls to prevent losses. The paper also encourages authorized crypto exchanges to share information with one another to prevent suspicious market abuse. This approach aims to reduce fraud and spread best practices throughout the industry.
Previously based on the government’s consultation process and roundtable meetings with the FCA throughout the year, this paper aims to ensure that crypto regulations are created in a fair and balanced manner. It stresses that firms need to clearly communicate risks to help users make informed financial decisions.
The FCA has requested feedback from industry representatives by March 14, 2025. However, the FCA states that the crypto market in the UK is currently largely unregulated. It also highlights the high risks, warning users to be prepared for the possibility of losing all their money in crypto investments.
Pump.fun Blocked in the UK
As reported by Kriptokoin.com, the UK’s ban on Pump.fun has caused a collapse in the meme coin sector. The platform saw a 38% drop in users and a 50% drop in token creation. Once popular, Pump.fun attracted millions of dollars in trading volume on the Solana network. However, due to runaway content and scandals, it was banned by the FCA. Following the ban, the platform’s daily revenue and trading volume quickly declined.
Meme Coins Plummet After UK’s Pump.fun Ban!
A report from Cambridge University examining decentralization claims in DeFi revealed that governance in DAOs is concentrated in the hands of a few major players, highlighting inequalities in the sector. Meanwhile, Ripple’s DeFi potential continues to attract the interest of developers.
