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Highlights
- Member of Parliament and Financial Secretary to the Treasury wants a modification to the Financial Service and Market Bill.
- The modifications would have to undergo a vote on 3 November.
- Currently, not all crypto-related businesses have to apply for a registration process to operate in the country.
The UK crypto space is amidst a string of changes at the moment. Following the introduction of the Financial Service and Market Bill in July early this year, it had its second reading on 7 September, wherein the House of Commons members passed it.
However, now, the Member of Parliament and Financial Secretary to the Treasury, Andrew Griffith, wants modification before it finally becomes law, thereby giving powers to the regulators to regulate financial promotion and other activities to crypto assets.
Griffith, in the bill, had aimed to introduce measures to regulate crypto ads and ban unauthorised crypto service providers. But now he has called it to go beyond the parallels of crypto ads or service providers. In fact, Griffith has now pitched for extending it beyond stablecoins.
Clarifying the powers of financial promotion
One of the reasons stated by Minister Griffith was to ensure that the powers related to financial promotion and its regulatory aspects can be relied upon to provide crypto assets and their related activities to fall in line.
If accepted, it may help the like of Financial Conduct Authority in structuring laws which would give them the power to punish those who disregard them. Currently, not all crypto-related businesses have to apply for a registration to operate in the country. While registering, these businesses would have to agree to the anti-money laundering and counter the Financing of Terrorism rules set by the regulators.
However, the new modifications would have to undergo a vote, which is expected to take place on 3 November.
Conclusion
If the modification gets the nod on 3 November, we may see it on similar lines that the European Union suggested with its MiCA bill. Even though the MiCA was finalised by lawmakers earlier in October, it is only coming into effect by 2024.
But if the vote goes in favour of the UK lawmakers, we may see the same rules set in, giving greater powers to FCA. Besides, with the UK aiming to become the crypto hub to the world, such a framework will only strengthen their processes and ensure that the country's crypto businesses will operate by the book.
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