UK proposes bringing crypto under regulatory eye

A proposed amendment to the UK’s Financial Services and Markets Bill would bring crypto under its scope, reports Blockworks.

The new clause, introduced by Parliament member Andrew Griffith, is meant “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 UK’s Treasury said in July it would seek to regulate “certain types” of stablecoins as a form of payment following the collapse of Terra’s algorithmic stablecoin earlier this year. The country introduced the Financial Services and Markets Bill to Parliament that month.

Financial Markets Infrastructure Sandboxes, included in the proposed bill, would also be created in a bid to allow firms to test new technologies and practices.

The proposed amendment comes after the UK’s Financial Conduct Authority (FCA) finalised stronger rules in August to ensure that firms marketing “high-risk investments” include better risk warnings.

The European Union has similarly moved to regulate crypto, as lawmakers voted in favour of the EU’s Markets in Crypto Assets bill (MiCA).

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