The UK financial services minister inserted a clause into a draught law that is currently before parliament and is almost certain to pass that would give Britain the authority to regulate all cryptoassets.
The modification to the financial services and markets law was proposed by Andrew Griffith, who was re-appointed as City Minister by Britain’s new Prime Minister, Rishi Sunak, on October 27th. The proposal is currently being approved by parliament.
The Financial Conduct Authority is only given the power to regulate stablecoins under the bill as it was initially written, but the change expands that authority to include marketing for all cryptoassets.
In a parliamentary document dated October 27th, the amendment states that this new provision implements the Financial Services and Markets Act 2000 to make clear that the authorities related to financial promotion and regulated activities can be relied upon to monitor and control cryptoassets and activities relating to cryptoassets.
If the administration proposes an amendment, it will very probably become law.
It would bring Britain closer to parity with the markets of the European Union in the cryptoassets legislation that is currently being finalised and is regarded as the first complete set of regulations for the nascent cryptocurrency industry.
Separately, on October 27th, Sam Woods, the deputy governor of the Bank of England, declared that the institution is advancing with the development of a regulatory regime for systemic stablecoins. This will enable both non-banks and banks governed by the BoE to innovate, and according to Woods, a public consultation paper on the new system will be released the following year.