27 Mar INATBA Submits Response to FCA’s DP24/4 Discussion Paper on Crypto Asset Regulation
On behalf of the International Association for Trusted Blockchain Applications (INATBA), we are pleased to submit our response to the Financial Conduct Authority’s (FCA) Discussion Paper DP24/4, focusing on the regulation of crypto assets, particularly the Admissions & Disclosures (A&D) and Market Abuse Regime for Crypto Assets (MARC). INATBA represents a diverse global community of blockchain stakeholders, including industry leaders, policymakers, regulators, and academia, working collaboratively to support the development of transparent and effective regulatory frameworks for digital assets.
We commend the FCA’s proactive efforts to establish a regulatory regime that fosters market integrity, investor protection, and innovation within the UK’s digital asset ecosystem. Our response reflects the insights and expertise of our members, who are deeply engaged in the evolving landscape of blockchain and crypto assets. We have carefully analyzed the proposed framework and provided detailed feedback on its potential impact, including recommendations to ensure proportionality, competitiveness, and international harmonization.
Key points of our response include:
- Market Integrity and Investor Protection: We support the FCA’s objectives to mitigate market abuse, enhance transparency, and establish robust disclosure standards. We emphasize the need for clear guidelines on smart contract security, governance structures, and technical audits to strengthen consumer protection.
- Balanced Approach to Regulation: While we recognize the importance of preventing illicit activities, we advocate for a proportionate approach that does not unduly burden startups and SMEs in the crypto space. We recommend tailored regulatory requirements that consider the unique characteristics of decentralized finance (DeFi) and non-custodial services.
- International Coordination and Standards Alignment: Given the cross-border nature of digital assets, we highlight the importance of interoperability with global regulatory frameworks, including the Markets in Crypto-Assets (MiCA) regulation in the EU. We encourage alignment with established international standards such as ISO 17442 Legal Entity Identifier (LEI) and verifiable LEI (vLEI) to promote transparency and regulatory compliance.
- Innovation and Market Growth: We propose measures to foster innovation while maintaining regulatory oversight. This includes supporting regulatory sandboxes, incentivizing responsible disclosures, and exploring decentralized mechanisms for transparent information sharing among industry participants.
INATBA appreciates the opportunity to contribute to this important discussion and remains committed to collaborating with the FCA and other stakeholders to shape a fair, transparent, and innovation-friendly regulatory environment for crypto assets. We welcome further engagement to discuss our recommendations and explore potential avenues for industry-regulator cooperation.
Please access our detailed response to DP24/4 by filling out the form below. Should you require any additional information or clarification, we would be pleased to assist.
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About INATBA
Launched in 2019 by the European Commission, INATBA – International Association for Trusted Blockchain Applications is a highly influential Association in promoting Blockchain and DLT adoption in Europe and globally. INATBA is mainly known for its credibility with regulatory authorities and policymakers and is appraised for its contributions to Markets in Crypto Asset Regulation (MICA), Transfer of Funds Regulation (TFOR), electronic Identification, Authentication and Trust Services (eIDAS), CHAISE Project, EU Pact for Skills, Academic & Governmental Advisory Bodies, and its passionate diverse global community of CEOs, CTOs, Heads of Policy, Public/Institutional Relations, Legal, Marketing & BizDev, Developers, Policymakers. To learn more, visit www.inatba.org.
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