UK government includes new crypto amendment in finance regulation bill

Quick Take

  • New amendments to the UK’s financial bill may lead to stronger regulation of crypto in the country.
  • The bill, which already had stablecoin regulation provisions, raises the bar for UK’s crypto regulatory framework.

The UK’s Financial Services and Markets bill is home to new amendments seeking to regulate crypto and ban unauthorized service providers, following an amendment paper published on Friday.

Andrew Griffith, financial services minister, tabled amendments and added a note "to clarify that the powers relating to financial promotion and regulated activities can be relied on to regulate cryptoassets and activities relating to cryptoassets. Cryptoasset is also defined, with a power to amend the definition."

If passed, the amendments will give the UK a more comprehensive regulatory framework for crypto. Specifically, it will provide the Financial Conduct Authority and HM Treasury with more oversight powers.

Currently, the UK's crypto regulatory powers are largely in the hands of the FCA, which decides on the registrations of crypto firms according to strict anti-money laundering requirements. 

The proceedings on the bill should be concluded on November 3. However, with turmoil following Prime Minister Liz Truss’ resignation on Thursday, changes in the schedule may be anticipated. 

The Financial Services and Markets bill's framework already focuses on stablecoins, and the broader framework will tie the UK closer to the EU’s comprehensive Markets in Crypto-Assets regulation.

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