In the words of Andrew Griffith, “The Treasury will consult on its approach with industry and stakeholders ahead of using the powers to ensure the framework reflects the unique benefits and risks posed by crypto activities.”
In July, the Financial Services and Markets bill (FSM) was introduced into the UK Parliament as "once in a generation opportunity to improve regulation." Back then, the proposed bill was only applicable to stablecoins instead of the entire crypto ecosystem.
However, Andrew Griffith, the Financial Secretary to the Treasury, recently suggested making amendments to the bill. One of these involves adding crypto tokens to the list of financial instruments in the UK.
Griffith’s explanatory statement claims that these amendments “clarify that the powers relating to financial promotion and regulated activities can be relied on to regulate crypto assets.”
He also proposed that officials should be allowed to regulate crypto ads and ban crypto platforms that operate without licenses.
Now, the House of Commons, the UK Parliament’s Lower House, has voted to recognize crypto assets as financial instruments. This will allow the authorities to regulate crypto assets under the FSM.
It is worth noting that the bill still needs to gain approval of the Parliament’s Upper House, the House of Lords. King Charles III will grant the final approval before its implementation.
