[UK FCA Seeks Feedback from Crypto Industry, Proposes Investment Rule Reforms and Enhanced Risk Control] Odaily Planet Daily News – The UK Financial Conduct Authority (FCA) has released discussion and consultation papers, proposing several reform suggestions aimed at 'enhancing the UK’s investment culture' and formally seeking feedback from the crypto industry. The FCA stated that while aiming to 'broaden consumer investment channels,' it plans to adjust rules related to client classification and conflicts of interest. The FCA pointed out that poor investment performance on high digital engagement (DEP) applications is almost entirely driven by crypto assets and contracts for difference (CFD) trading. Regulators emphasized that some users are engaging in investments through 'crypto asset derivative products' without limits, risk warnings, or suitability tests, posing significant potential risks. In the consultation paper, the FCA proposed new guidelines: for clients whose primary investment history is concentrated in high-risk speculative assets or crypto assets, this should not be considered as evidence of 'professional investment capability' unless there is sufficient evidence to meet the professional investor threshold, including the ability to bear potential losses. The FCA stated that this reform aims to simplify the regulatory framework, placing clearer review responsibilities on institutions rather than relying on the previously 'relatively casual tests.' The regulatory body has requested that companies involved in crypto asset consulting or sales submit feedback by February and March next year. In recent years, the UK has been gradually modernizing crypto regulation, including formally recognizing digital assets as 'property' in 2024, providing clearer legal grounds for cases involving theft, bankruptcy, and more. Meanwhile, the government is also evaluating whether to ban crypto asset donations to political parties. (Cointelegraph)