The UK’s House of Commons on Thursday (Nov. 3) passed new regulations that limit how cryptocurrency assets can be promoted in the country.
The latest crypto-focused amendments to the Financial Services and Markets Bill clarify the bill’s approach to crypto assets and enshrine the powers of the Financial Conduct Authority (FCA) and the Treasury when it comes to their regulation and legal status.
Explaining the changes, City Minister Andrew Griffith wrote: “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 on to regulate crypto assets and activities relating to crypto assets.”
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Specifically, Griffith has moved to append the phrase “including where an asset, right or interest is, or comprises or represents, a crypto asset” to Section 21 of the Financial Markets and Services Act (2000), which forbids unregulated entities from advertising or otherwise promoting investment activities.
Ahead of the new bill being passed into law, crypto firms that want to carry on doing business in the U.K. have been scrambling to get the FCA approval that will allow them to continue operating as they have, including running promotional campaigns.
The FCA scrutinizes crypto firms for their ability to combat financial crime before granting them approval.
However, as PYMNTS has reported, the FCA said in March that just 27 of the 100-plus companies that had applied for crypto registration had been granted approval, while 58 had withdrawn their applications.
