Amendment to UK financial services bill provides regulation for crypto activities
An amendment to the Financial Services and Markets Bill now before the United Kingdom’s Parliament would extend the law’s powers to regulate financial promotion and other activities to crypto assets. The amendment was written by Member of Parliament and Financial Secretary to the Treasury Andrew Griffith.
The 335-page bill was introduced in July and had its second reading in the House of Commons on Sept. 7. According to the explanatory statement the amendment, it would:
“[…] clarify that the powers relating to financial promotion and regulated activities can be relied on to regulate cryptoassets and activities relating to cryptoassets.”
The Financial Conduct Authority (FCA), the U.K.’s financial regulator, a “Dear Chief Executive” letter Aug. 9, which detailed its supervisory strategy over financial firms’ so-called “alternatives portfolio.” The letter stated: “We will publish final rules for the promotion of crypto assets once the Treasury formalises legislation to bring these into our remit.”
Most crypto-related businesses in the U.K. of the FCA now, though they have the option of applying for registration and will be required to do so next year. The registration process currently looks only at Anti-Money Laundering and Countering the Financing of Terrorism measures and for many applicants.
It was a pleasure to give evidence to the House of Commons Financial Services & Markets Bill Committee today, answering questions from and on UK regulatory competitiveness, crypto-assets and stablecoin. More here:
— Adam Jackson (@Adam_E_Jackson)
The FCA also of high-risk financial products in August, and explicitly stated that crypto assets can be risky but the agency was not yet regulating them. The country’s Advertising Standards Authority in monitoring crypto-related advertising.
Griffith’s predecessor as financial secretary Richard Fuller stated in September that the government was a “hub for crypto technologies.” On Oct. 10, the European Parliament Committee on Economic and Monetary Affairs passed the Markets in Crypto-Assets bill and a full parliamentary vote is expected soon.