UK Government Adds New Crypto Amendment In Finance Regulation Bill

The UK’s Financial Services and Markets bill published On Friday, an amendment paper was published stating that the UK government wanted to regulate crypto and ban unlicensed service providers. 

Andrew Griffith, minister of financial services, stated in the amendments paper that “to clarify that powers relating financial promotion and regulated activity can be relied upon to regulate cryptoassets or activities relating thereto.” The definition of cryptoasset can also be modified.

 

The bill will be passed if the amendments are approved. This will allow the UK government to have a more comprehensive regulatory framework regarding cryptocurrencies. The bill will create the Financial Conduct Authority (FCAHM Treasury has greater oversight authority over crypto regulation.

 

The bill’s advancements will be halted by November 3. However, with the confusion going on with Prime Minister Liz Truss’ who tendered her resignation on Thursday, it is said that there could eventually be some changes to the schedule. 

 

The UK has no crypto regulatory powers at the moment Primarily bestowed on the FCA The FCA has been given the power by the UK Government to regulate promotion and advertising of crypto assets under its existing oversight structure.

 

The UK Government was concerned about regulation in July 2020. Cryptocurrency Investors in the crypto market are often left without the same protections as retail investors such as compensation and authoritative recourse.

 

And as a result of this, the UK government proposed that crypto asset promotions should fall under the scope of the Financial Conduct Authority’s existing oversight and should not require a whole new framework just for digital assets.

 

City Minister Glen said, “If adverts by unauthorized firms are misleading, or don’t fully outline the risks, then people can end up losing money. That’s why we want to put more protections in place around such financial promotions, including promoting crypto assets, while continuing to ensure people have access to a wide range of products on the market.”

Source: Shutterstock

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