The United Kingdom is set to move for a more robust crypto regulation under its Financial Services and Markets bill. The amendments to the Bill aim to raise crypto regulations and ban unauthorized service providers. The final amendments were published on Friday, October 21, 2022.
Crypto Regulations during 2000
The UK laws around the 2000s banned any regulated financial activity without permission. Evidently, the country was in dire need of a comprehensive and transparent crypto regulation framework, which the recent amendment seeks to offer. The new amendment would empower the Financial Conduct Authority and Treasury to implement new regulations for establishing a better digital network in the country.
Most of the crypto operations were also not controlled by the Financial Conduct Authority, highlighting the lack of a regulatory framework. With the amendment of the new Bill, these companies must also register themselves within a year to carry out their operations in the country. While such a move focuses on anti-money laundering practices, checking other parameters like facilitating terrorism, etc., aims for a better and highly regulated cryptosystem in India.
FCA’s Recent Crypto Regulation Measures
As mentioned earlier, the new amendments aim to strengthen crypto regulations in the UK by empowering the FCA. The body undertook several measures to ban the advertising of high-risk crypto tokens in August. It also spread considerable awareness regarding the uncertainty of cryptocurrencies. Additionally, before the amendment, the body also clarified they were not regulating such financial assets.
With the gradual strengthening of crypto laws and regulations, UK’s Advertising Standards Authority implemented more robust laws to monitor the nature of advertisements in the crypto market. Hence, promoting high-risk assets or fake advertising was banned to ensure a healthy and safe crypto environment.
Amending UK Crypto Regulations
The Financial Services and City Minister, Andrew Griffin, announced new crypto amendments for better regulation claiming the amendment was made to
“Clarify that the powers relating to financial promotion and regulated activities can be relied on to regulate crypto assets and activities relating to crypto assets.”
Thus, the amendment aims to develop a clear crypto regulations framework for all investors and bodies monitoring such assets, ruling out the chances of unregulated exchanges.
The fate of the Bill
With the Bill undergoing its second hearing at the House of Commons, its fate or response amongst the public is unclear. Andrew Jackson, a member of Innovate Finance, highlighted the ambiguity of the Bill in its second hearing.
While most expected the hearing to conclude within the first week of November, the resignation of UK Prime Minister Liz Truss on Thursday can delay it further. The nomination of the new Prime Minister might not only bring about changes in the Ministry but also in the fate of the Bill.