In the revisions paper, Financial Services Minister Andrew Griffith said, “to clarify that the powers relating to financial promotion and regulated activities can be relied on to regulate crypto assets and activities relating to crypto assets. Cryptoasset is also defined, with a power to amend the definition.”
The changes will provide the UK government with a more comprehensive legal regime for cryptocurrencies if indeed the bill is approved. The measure will give the Financial Conduct Authority (FCA) and HM Treasury additional control over cryptocurrency regulation in specific.
By November 3, no more progress will be made on the bill. However, there may ultimately be some adjustments to the program due to the commotion around Prime Minister Liz Truss' resignation, which she submitted on Thursday.
The FCA now possesses the majority of the UK's regulatory authority over cryptocurrencies because the UK Government has given the FCA the authority to control advertising and marketing of crypto assets under its current rules.
The UK government expressed concern in July 2020 about the absence of regulation surrounding cryptocurrencies and the investment derivatives they are affiliated with, which frequently denies shareholders in the crypto business the very same safeguards as regular investors, such as legal repercussions and reimbursement.
And as a result, the UK government suggested that advertising of digital currencies should be covered by the Financial Conduct Authority's existing supervision rather than necessitate a whole new system just for digital assets.
Glen, the city minister, remarked:
“If adverts by unauthorized firms are misleading, or don‘t fully outline the risks, then people can end up losing money. That’s why we want to put more protections in place around such financial promotions, including promoting crypto assets, while continuing to ensure people have access to a wide range of products on the market.”
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