The bill has received royal assent, a purely procedural step following agreement from lawmakers, that makes the Financial Services and Markets Bill an Act, and includes measures to bring crypto and stablecoins into the scope of regulation. Previously, the bill was approved by the upper chamber of Parliament.
The Act ‘gives regulators control of their financial services rulebook,’ following the UK exit from the EU, enabling regulation of crypto assets to support their safe adoption in the UK, the Financial Services Minister said in a statement.
The bill, which was introduced in July 2022, gives regulators more power over the financial system, including crypto. While the bill was debated in Parliament, amendments were added to treat all crypto as a regulated activity and to supervise crypto promotions. The bill will also bring stablecoins into the scope of payments rules.
The UK’s Treasury, Financial Conduct Authority, Bank of England, and the Payments Systems Regulator will soon be able to introduce and enforce rules to regulate the sector.
The Treasury has been consulting on its proposed rules for the sector since February 2023, in line with the Conservative Government’s objective to turn the country into a crypto hub. New specific rules for the crypto sector could come in the near future.
In June 2023, the UK’s Financial Conduct Authority has revealed new advertising rules for crypto assets to ensure users understand the risks associated with crypto.
According to the new rules, companies dealing with cryptocurrencies need to make sure that people are well-informed and have enough experience to invest in crypto. Furthermore, crypto promotions need to include a series of risk warnings, and adverts are required to be clear, fair and not in any way misleading.
These rules were implemented in the context of a government legislation package that wants to bring crypto promotions into the regulator's remit. FCA representatives agreed that deciding whether to invest in crypto or not is a personal choice. However, they pointed to research-driven data that shows many users regret making a hasty decision, particularly one that’s not backed up by proper research.
In essence, the new rules aim to give people the time and the right risk warnings to make an informed choice. FCA research shows that the estimated crypto ownership has more than doubled from 2021 to 2022. Specifically, 10% of the 2,000 people surveyed stated that they own crypto.
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