The UK government is looking to further clarify the regulation of cryptocurrencies, in line with the latest amendment to the Financial Services and Markets Bill.
According to a memorandum of amendment tabled on Friday, October 21, the UK legislature wants to give regulators more control over crypto advertisements and ban unregistered crypto service providers.
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Amendment “to clarify” the regulation of advertisements and crypto activities
Andrew Griffith, the Treasury’s financial secretary, tabled the amendments to the bill, with an explanatory note stating that the aim is to “clarify” the regulation of financial promotion and other crypto-related activities.
Notably, the amendment allows crypto assets to be regulated in accordance with laws on financial promotion and regulated market activities.
Griffith also noted that the term crypto asset was defined in the amendment, “with authority to modify the definition.”
Proceedings on the Financial Services and Markets Bill are expected to be completed by November 3, 2022, although the timing may now be affected by the resignation of Prime Minister Liz Truss.
If lawmakers pass the amendments, the UK will grant market regulators such as the Financial Conduct Authority (FCA) and the UK Treasury more powers to oversee the crypto market.
The amendment comes amid the UK government’s efforts to bring the crypto sector into the country’s regulatory framework, aligning the industry with the broader goal of ensuring financial stability and promoting innovation. Of these, the UK is already ahead of the US.
Recently, as Invezz reported, the European Parliament passed the Regulation on Crypto Asset Markets (MiCA), providing much more clarity on crypto regulation in the EU.
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