UK minister proposes an amendment to regulate crypto ads & service providers

Andrew Griffith submitted the welcomed amendments to his bill to give authority to the financial regulators to regulate crypto advertisements & crypto companies.

The United Kingdom (UK) is a crypto-adaptive region in the world, which was earlier a part of the European Union (EU). In early 2020, the UK exited the EU. In the UK, the Financial Conduct Authority (FCA) is a leading financial regulatory body, which also provides regulatory approval for crypto companies to allow them to provide digital assets services for the citizens of the UK.

On 21 October, Minister Andrew Griffith submitted the welcomed amendments to his bill to ban the unauthorized crypto service provider in the UK. 

Through the amendment, Andrew tried to assert that the government can rely on the traditional financial regulatory & promotion bodies to play a leading role to regulate the crypto sector.

“(existing laws to) 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 amendment reads.

Few reports noted that the latest law development activities by the UK minister may be a possible violation of UK laws because no one is allowed to interfere in the financial regulatory system without any approval from the corresponding agencies.

Experts believe that proposed amendments may help to bring more clarity on the existing crypto regulatory policies in the UK and further it may help to push crypto adoption.

The FCA agency is known as a highly strict regulatory body in the UK. The majority of the crypto proponents & crypto companies’ executives said that FCA doesn’t want circulation of cryptocurrencies and this is the big reason which makes it very tough for crypto companies to secure regulatory approval from FCA.

On 30 September, Sheldon Mills, the executive director for competition and consumers at the FCA agency, said that it is not surprising that many crypto companies are struggling to gain regulatory approval in the UK because regulatory frameworks are very strict to prohibit illegal crypto-related activities.

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