The UK government is seeking to provide further clarity on the regulation of cryptocurrencies, per the latest amendment to the Financial Services and Markets bill.
According to an amendment note introduced on Friday, 21 October, the UK legislature wants to give regulators more control over crypto ads and ban unregistered crypto service providers.
Andrew Griffith, the Financial Secretary to the Treasury, 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 for crypto assets to be regulated as per the laws on financial promotion and regulated market activities.
Griffith also noted that the term crypto asset had been defined in the amendment, “with a power to amend the definition.”
Proceedings on the Financial Services and Markets bill are expected to conclude by 3 November 2022, although the timeline may now be impacted by the resignation of Prime Minister Liz Truss.
If legislators pass the amendments, the UK will hand market regulators such as the Financial Conduct Authority (FCA) and HM Treasury more powers to oversee the crypto market.
The amendment comes amid the UK government’s push to bring the crypto sector into the country’s regulatory framework, aligning the industry to the broader goal of ensuring financial stability as well as promoting innovation. Of these, the UK is already ahead of the United States.
Recently, as Invezz reported, the European Parliament passed the Markets in Crypto Assets (MiCA) regulations, offering much more clarity on crypto regulation across the EU.
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