© Stocksak. FILE PHOTO – This illustration, taken January 6, 2020, shows representations of bitcoin and pound banknotes. REUTERS/Dado Ruvic
LONDON (Stocksak – Britain would have the power regulate all cryptoassets as per a proposal that the UK financial services minister added to a draft bill before parliament, which will almost certainly pass.
Andrew Griffith was reappointed as City Minister by Rishi Sunak, Britain’s new Prime Minister. Parliament has now begun to approve the amendment to the Financial Services and Markets bill.
As originally written, the bill gives the Financial Conduct Authority the power to regulate stablecoins, but the amendment expands the remit to include promotions for all cryptoassets.
“This clause amends the Financial Services and Markets Act 2000 in order to clarify that powers relating financial promotion and regulated activity can be relied upon to regulate cryptoassets and related activities,” the amendment reads in a Thursday parliamentary document.
A government amendment is almost certain to be passed into law.
It would bring Britain closer to the European Union’s cryptoassets market. This law, which is currently being finalised, is considered the world’s first comprehensive set for regulations in the emerging crypto sector.
Separately on Thursday, Bank of England Deputy Governor Sam Woods said the central bank is moving forward to create a regulatory framework for systemic stablecoins. Woods stated that this will allow non-banks as well as BoE-regulated banks to innovate. A public consultation paper about the new regime will also be published next year.