2 - 4 minute read
The cryptocurrency industry in the United Kingdom has been celebrating a major victory this week, as lawmakers voted in favor of an amendment that will ease advert approvals for crypto firms. The amendment is set to become law and will allow crypto companies that are already registered with the country’s financial watchdog under its anti-money laundering regime to approve their own ads.
This exemption will only apply until new crypto laws come into force, and can still face opposition until it officially comes into force. The Financial Conduct Authority (FCA) will regulate crypto companies under the existing promotions law, which should help safeguard consumers from misleading crypto promotions. The Treasury, the government’s finance arm, tweeted in March that this rule will allow for better regulation of the sector.
The Financial Services and Markets Bill, which is going through Parliament, seeks to regulate crypto as financial instruments and will give regulators more power over the sector, including for regulating promotions. The government is also consulting on broader rules for the crypto sector.
The amendment should come into effect around four months from now, allowing time for crypto companies to adjust. However, the crypto industry is still waiting for broader laws to be put in place, which may require new authorization. The government is hoping to have these laws in place by late 2023.
The Bottom Line
The decision by UK lawmakers to ease advert approvals for crypto firms is a significant step forward for the industry in the country. The move should help to promote the growth of blockchain-based businesses and encourage more investment in the sector. However, traders should be cautious as the amendment will only apply until new crypto laws come into force, and the industry is still waiting for broader laws to be put in place. It is important for traders to stay up-to-date with the latest regulatory developments and adjust their strategies accordingly.