UK Proposes Changes to Crypto Regulatory Regime to Boost Competition

The UK's Financial Conduct Authority (FCA) is set to introduce new regulations aimed at increasing competition in the cryptocurrency market. According to a recent proposal, proprietary traders will no longer need to seek a licence from the FCA to provide market making services.

Under the current regime, firms are required to obtain a licence from the FCA for various activities related to cryptoassets. However, this has been seen as an obstacle for proprietary traders who want to operate in the UK without being subject to licensing requirements.

The proposed amendments would introduce an exclusion for proprietary trading, allowing firms to engage in market making services without needing a licence. This is expected to create a more level playing field for UK-based crypto prop traders, who will be able to compete with international counterparts without being hindered by regulatory burdens.