UK Parliament Amendments to Financial Services Act That Will Regulate Activities Related to Crypto Assets

Members of Parliament and Finance Secretary for the UK Department of Finance, Andrew Griffith. (photo; Twitter @griffitha)

JAKARTA - The amendments to the Financial Services and Markets Act are now in the hands of the UK parliament, which will expand the powers of the law to regulate the promotion of finance and other activities for crypto assets. The amendments were written by Member of Parliament and Secretary of the Treasury for the UK Treasury, Andrew Griffith.

The 335-page bill was introduced last July and was read a second time in the House of Commons on September 7. According to the statement and explanation accompanying the amendment, the bill will clarify that powers relating to financial promotion and regulated activities can be relied upon to regulate crypto assets and activities related to crypto assets.

The Financial Conduct Authority (FCA), the UK's financial regulator, issued a "Dear Chief Executive" letter on August 9, detailing its oversight strategy of so-called "alternative portfolios" of financial firms.

“We will issue the final rules for the promotion of crypto assets after the Ministry of Finance passes legislation to bring this within our jurisdiction,” reads the letter, quoted by Cointelegraph.

Most crypto-related businesses in the UK are not under FCA control for now, although they have the option to apply for registration and will be required to do so next year.

The current application process looks only at Anti-Money Laundering and Countering the Financing of Terrorism measures and has proven challenging for many applicants.

The FCA also took action against advertising high-risk financial products in August and explicitly stated that crypto assets could be risky, but the agency has not regulated it. The country's Advertising Standards Authority is more aggressive in monitoring crypto-related ads.

Griffith's predecessor as finance secretary, Richard Fuller, stated in September that the government was committed to making the UK a "crypto technology hub." On October 10, the European Parliament Committee on Economic and Monetary Affairs passed the Markets in Crypto Assets Bill and a full parliamentary vote is expected soon.