Britain proposes regulation of all cryptoassets

Under a proposal the UK financial services minister has added to a draft bill that is now before parliament and is virtually surely going to pass, Britain would have 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 Thursday. The proposal is now being approved by parliament.

The Financial Conduct Authority is only given authority to regulate stablecoins under the law as it was initially written, but the change expands that authority to include marketing for all cryptoassets.

In a parliamentary document dated Thursday, the amendment states that "this new clause amends the Financial Services and Markets Act 2000 to clarify that the powers relating to financial promotion and regulated activities can be relied upon to regulate 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 finalized and is regarded as the first complete set of regulations for the nascent cryptocurrency industry.

Separately on Thursday, Sam Woods, the deputy governor of the Bank of England, said that the institution is advancing with the development of a regulatory framework for systemic stablecoins. This will enable both non-banks and banks governed by the BoE to innovate, and according to Woods, a public consultation document on the new system will be released the following year.