UK Proposes Expanded Crypto Regulation to Cover All Cryptoassets

UK Proposes Expanded Crypto Regulation to Cover All Cryptoassets

The UK is taking significant steps to strengthen its regulatory framework for cryptoassets. A new proposal by the UK's financial services minister, Andrew Griffith, seeks to expand the scope of the Financial Services and Markets Bill to cover all cryptoassets, not just stablecoins. This amendment, which is likely to pass into law, would grant the Financial Conduct Authority broader powers to regulate crypto-related activities.

Key Details of the Regulatory Expansion

The proposed amendment clarifies that the Financial Services and Markets Act 2000 will now explicitly cover the regulation of cryptoassets and related activities. This move aligns the UK's crypto regulations more closely with those of the European Union, which is finalizing its own comprehensive cryptoasset rules.

Bank of England's Role in Stablecoin Regulation

Separately, the Bank of England announced plans to develop a regulatory framework for systemic stablecoins. This initiative, led by Deputy Governor Sam Woods, aims to allow both banks and non-banks to innovate within the crypto sector. A public consultation on the new regime is expected to be published next year.

Implications for the Crypto Industry

These developments signal the UK's commitment to creating a clear and robust regulatory environment for cryptoassets. By broadening its regulatory powers and aligning with international standards, the UK aims to foster innovation while ensuring financial stability and consumer protection.