The U.K. government has proposed new legal regulations that would control cryptocurrency advertisements and prohibit unlicensed crypto companies from providing services.
An sector that had sought for previous ideas to extend beyond stablecoins, which are payments-focused cryptoassets that strive to sustain value in relation to fiat currencies, has welcomed amendments offered by minister Andrew Griffith to his own bill on Friday.
The measures, which are an amendment to the Financial Services and Markets Bill, “clarify that the powers relating to financial promotion and regulated activities can be relied on to regulate cryptoassets and activities relating to cryptoassets,” according to an explanatory note presented by Griffith and published on Friday. It is against the law in the UK to engage in regulated financial operations without authorization, according to legislation enacted in 2000.
The measures are likely to be well received by a sector that has been pleading for greater regulatory certainty, as the European Union has already provided with its Markets in Crypto Assets law (MiCA).
The modifications, according to Nicholas Taylor, head of public policy at cryptocurrency exchange Luno, “allow the Treasury and FCA [Financial Conduct Authority] to implement a full regulatory regime for crypto, a highly welcome move.” The parent organisation of CoinDesk, the Digital Currency Group, owns Luno.
At a hearing on the bill on Wednesday, Andrew Jackson of the fintech industry organisation Innovate Finance also called attention to the gap.
Additionally, regulators have been eager to include cryptocurrency in the scope of their authority. Prior to legislation, the FCA went so far as to outline the limitations it seeks to impose on cryptocurrency advertisements in August.
The resignation of Prime Minister Liz Truss, who was announced on Thursday, may have an impact on the bill’s committee discussion, which is scheduled to take place between now and November 3. Next week’s deadline for the selection of a successor could signal a shift in other ministerial roles.
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