Why the UK financial services bill may undergo a modification?

Follow us on Google News:
 Why the UK financial services bill may undergo a modification?
Image source: © Grafner | Megapixl.com

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.

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instruments or cryptocurrencies, you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete, or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Featured Articles