UK proposes regulating all crypto assets in Financial Services Bill

UK proposes regulating all crypto assets in Financial Services Bill

The UK government has reportedly proposed amendments to the Financial Services and Markets Bill to include the regulation of all crypto assets.

The amended bill has been put forth before the parliament by City Minister Andrew Griffith under the Sunak-led cabinet and is likely to pass.

The government-proposed amendments to the bill, which have been passed in the lower house and are yet to be presented in the upper house, will pave the way for a comprehensive regulatory regime for crypto.

With the amendments, policymakers will be able to launch a regulatory regime for crypto under the Designated Activities Regime.

The bill initially gave the Financial Conduct Authority (FCA) powers for regulating only stablecoins, but the amendment will increase the scope and cover promotions for all types of digital assets.

According to the amendment in a parliament document, the new clause amends the Financial Services and Markets Act 2000 to clear that powers related to financial promotion and regulation can be levied for regulating crypto assets and activities related to it.

If the government puts forth an amendment, it means that it will most likely be passed into law.

The bill will put the country at par with the European Union markets in terms of crypto assets law, which is underway to be finalized, making Europe the first in the world to have a comprehensive set of rules for regulating the upcoming crypto sector.

Rishi Sunak, the new UK PM has stated that effective regulation will provide crypt entities the confidence to think and invest long-term to make sure that the future businesses and the jobs they create are in the UK.

This comes after the country was named the largest crypto economy in the continent, and has seen $233 billion in raw transaction value between July 2021-June 2022.

Meanwhile, Sam Woods, the Bank of England’s Deputy Governor, said that the bank will soon set a regulatory framework for systemic stablecoins, allowing BoE-regulated banks as well as non-banks to innovate.

Source credit:

About the author

Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.