The British government has come up with new legislative measures to control cryptocurrency advertisements and prohibit unlicensed crypto providers from providing their services. Minister Andrew Griffith highlighted amendments to the Financial Services and Markets Bill on October 21.
The crypto sector had been calling for existing ideas to expand beyond stablecoins. The bill would maintain U.K’s position as an open and global financial hub and harness the opportunities for innovative technologies in financial services. Moreover, it would enhance the competitiveness of British markets and promote the effective use of capital.
Griffith said the measures amend existing laws 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. It should be noted that it’s against the law in the United Kingdom to engage in regulated financial operations without obtaining authorization to do so. The minister believes that reforms have a good chance of being well-received by a sector that has been asking for more regulatory clarity. The European Union has been providing regulatory clarity through its Markets in Crypto Assets (MiCA) regulation.
The Financial Conduct Authority (FCA), in August, highlighted the limitations it plans to place on cryptocurrency advertisements in advance of legislation. But the FCA has recently come under fire for its handling of the industry – in regard to approving licenses for new operators.