The amendment to the UK financial services bill provides regulation for cryptocurrency activities. The bill was on stablecoins from the start. Now the Financial Conduct Authority (FCA) will have the power to regulate activities related to cryptocurrencies if the amended bill passes.
UK prepares new cryptocurrency bill
An amendment to the Financial Services and Markets Act, currently before the UK Parliament, expands the law’s authority to regulate cryptocurrencies. The amendment was written by Member of Parliament and Financial Secretary to Treasury Andrew Griffith. Authorities shared the 335-page bill with the public in July. Its second reading came from the House of Commons on September 7. According to the explanatory statement accompanying the change:
…clarify that powers related to financial promotion and regulated activities can be trusted to regulate activities related to cryptocurrencies and cryptoassets.
The Financial Conduct Authority (FCA), the UK’s financial regulator, published a “Dear Chief Executive Officer” letter on August 9 detailing its audit strategy over the so-called “alternative portfolio” of financial firms. The letter included the following statements:
We will publish the final rules for the promotion of cryptocurrencies when the Treasury formalizes the legislation to include them in our mandate.
If the bill is accepted
In this case, the changes will provide the UK government with a broader regulatory framework for cryptocurrencies. The bill specifically gives the FCA and HM Treasury more oversight powers over crypto regulation. Progress on the bill will expire on November 3. But confusion remains over Prime Minister Liz Truss, who submitted her resignation on Thursday. However, we may see some changes in the calendar over time.
Current attitude towards cryptocurrencies
Most crypto-related businesses in the UK have the option to apply for registration right now. However, they are not currently under the control of the FCA, although they should do so next year. The registration process currently only looks at Anti-Money Laundering and Counter-Terrorism Financing measures.
The FCA also took action on advertising high-risk financial products in August. He made it clear that cryptocurrencies can be risky. However, he noted that the agency has not yet regulated them. The country’s Advertising Standards Authority is taking a more aggressive stance in monitoring crypto-related ads.
Griffith’s financial secretary, Richard Fuller, stated in September that the government is committed to making the UK “a hub for crypto technologies”. On October 10, the European Parliament’s Committee on Economic and Monetary Affairs approved Markets in the Crypto Assets law, and a full parliamentary vote is expected soon. cryptocoin.comAs you follow, it is preparing to publish the draft law on the prohibition of mining in the European Union.
