The new crypto regulation bill grants more powers to the Financial Conduct Authority.
The Treasury of the United Kingdom, a department of His Majesty's Government responsible for developing and executing the government's public finance policy and economic policy, is reportedly preparing a package of guidelines to tighten crypto regulations.
According to the news reports shared by Financial Times, the new package of guidelines includes limiting foreign companies from selling their products and services in the UK's market, providing information on how to deal with the collapses of crypto companies and restricting crypto advertisements.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Ethereum & What is it Used For? (Animated Explanation)
On top of that, the rules will give the Financial Conduct Authority (FCA) more powers to regulate the crypto industry in the UK. With the new crypto bill, FCA will monitor the operations of crypto firms and their advertisements.
FCA issued a consultation paper to understand the industry’s approach to crypto marketing. The UK’s financial watchdog is collecting comments on crypto advertisements until February 7th, 2023.
It is worth noting that the Financial Times report does not go into detail about possible regulations. However, the news portal emphasised that companies that want to operate in the UK would have to register with the FCA, which is another mission for crypto firms.
According to FCA chief executive Nikhil Rathi, 85% of companies who applied to be registered in the UK did not pass the FCA’s anti-money laundering (AML) tests.
The new guidelines are reportedly a part of the UK's financial service and market bill, which was already introduced to the British Parliament.
The spokesperson for The Treasury of the United Kingdom stated:
The UK is committed to creating a regulatory environment in which firms can innovate, while crucially maintaining financial stability and regulatory standards so that people and businesses can use new technologies both reliably and safely.”
It is worth noting that, on December 7th, the cross-party Treasury committee is holding a meeting with the Bank of England and FCA to discuss crypto-related risks and the “pros and cons” of central bank digital currency (CBDC).