Right at The City UK’s Annual dinner, Andrew Griffith, a UK MP and economic secretary to the Treasury, announced plans to release the Financial Services and Markets Bill (FSMB) on or before Easter this year. Griffith’s doing this as part of his vision “to boost growth and competitiveness in the financial services sector.”
“My ambition is for us to be the global financial hub – using our strengths to enhance strong relationships with jurisdictions all around the world, attracting investment and increasing opportunities for cross-border trade,” the UK MP said. “First, is to deliver the Financial Services and Markets Bill. To get that on the statute book by Easter so we can unlock the reforms it contains.”
The amendment to the FSM Bill began in October of last year and one of the crucial considerations of the document was the inclusion of crypto as a regulated financial instrument.
“The Treasury will consult on its approach with industry and stakeholders ahead of using the powers to ensure the framework reflects the unique benefits However, the bill has yet to become law despite its new provisions,” Griffith said at the time.
FSMB to Empower Crypto Regulators
Only a few days ago, the UK Treasury Department made public a consultation paper outlining plans for the regulation of cryptocurrency exchanges and platforms. Included in this consultation paper are guidelines for regulating digital asset service providers, lending transactions, and how digital assets are stored. According to the UK Treasury, the document will remain open until April 30th.
“Just yesterday we published a consultation setting out comprehensive proposals for regulating the sector,” Griffith said. “It’s a big potential opportunity — I want to get it right so am actively seeking your views.”
Once the bill is finally passed into law, the Financial Conduct Authority (FCA) and HM Treasury will be given more control over the crypto industry. Likewise, it may share a resemblance with the European Union Markets in Crypto-Assets (MiCA) regulation which has gone past parliamentarians’ approval.
Markedly, the FCA already controls a significant aspect of crypto regulation in the UK including the regulation of crypto firms in synchronization with Anti-money laundering (AML) procedures.