The UK government has taken steps to introduce regulatory policies that will oversee cryptocurrency promotions and other crypto-related activities.
An amendment proposal to the Financial Services and Markets Bill presented by Member of Parliament and Financial Secretary to the Treasury, Andrew Griffith, has called for the extension of regulatory oversight beyond stablecoins to include other crypto assets.
In an explanatory note accompanying the amendment published on Friday, Griffith noted that the proposal would "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."
The proposed amendments, if approved, will empower the UK's financial regulator, the Financial Conduct Authority (FCA), and the Treasury to introduce a full regulatory regime for crypto assets and businesses offering these services.
This latest move by the UK government is considered by several members of the crypto industry as a step in the right direction, considering that a murky regulatory landscape remains the biggest hindrance to the mainstream adoption of crypto among UK residents.
For the longest time, the cryptocurrency industry has been calling on financial regulators for more regulatory clarity on digital assets within the UK, such as those offered by the European Union with its Markets in Crypto Assets regulation (MiCA).
The measures outlined would help to regulate crypto ads and prevent unauthorised providers from offering crypto services, especially as most crypto-related businesses in the UK are currently not licensed by the FCA.
While crypto providers have the option of applying for registration with the regulatory agency, the registration processes have proven to be very challenging, with many applicants dropping out of the list due to multiple delays by the FCA.
The financial regulator has also taken steps to protect consumers from fraudulent crypto ads by placing restrictions on the advertising of high-risk financial products earlier in August. The FCA reiterated its long-standing warning regarding the risks involved in investing in crypto assets.
The UK's Advertising Standards Authority (ASA) has also upped its efforts to curtail ads that it has deemed "irresponsible". As part of a nationwide crackdown on misleading crypto ads in the UK, the ASA issued a "red alert" notice to over 50 companies earlier this year.
Discussions about the bill are currently ongoing and are expected to be finalized by November 3rd. However, this timeline may be affected by the departure of Prime Minister Liz Truss.
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