The United Kingdom
is getting closer to treating cryptocurrency as a regulated activity, with the promotion
of digital assets being closely monitored. On Monday, lawmakers from Parliament’s
upper chamber and the House of Lords ratified the Financial Services and Markets Bill
(FSMB).
House of Lords Approves Crypto Laws
The bill originally proposes to regulate stablecoins in the payments industry. However, provisions developed for crypto as a regulated activity and overseeing crypto ads were added in subsequent amendments.
The FSMB
outlines the UK’s economic strategy post-Brexit. The bill originally proposes
to regulate stablecoins in the payments industry. However, provisions to
deal with crypto as a regulated activity and oversee crypto ads were added
in subsequent amendments.
As part of
efforts to regulate the cryptocurrency industry in the UK, His Majesty’s
Treasury recently consulted with the
public on
proposed regulations as part of steps to prepare draft provisions
on regulating the crypto
industry. The rules propose measures to offer UK consumers better protection
while allowing the crypto industry to grow within a regulated ecosystem.
In April,
Andrew Griffith, the Economic Secretary to the UK Treasury, told CNBC that
crypto-specific regulation could come into force in the next year. He noted
that the country is seeking to position itself as a “global hub for crypto
asset technology.”
Eyes on the Crypto Industry
Recently,
a group of lawmakers put forward 53
recommendations for crypto regulation. The All-Party Parliamentary Group (APPG) for
Crypto and Digital Assets Group also sought the appointment of a dedicated
official to oversee the regulatory process.
Finance Magnates
reported that pro-crypto lawmakers divided the recommendations into several
segments, including the country’s approach toward crypto regulations, the role
of the UK regulations, the central bank digital currencies, and risk in
consumer protection and economic crimes.
In a
related development, the UK Financial Conduct Authority is making plans to enforce
new rules around
cryptocurrency marketing and advertising from October 8. Previously, the Treasury
announced it was introducing a
time-limited exemption that will enable crypto firms that are authorized under the
FCA’s anti-money laundering regime to issue their promotional materials before
the new regulatory regime takes off.
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This article was written by Solomon Oladipupo at www.financemagnates.com.
