- The Financial Services and Markets Act (FSMA) 2023 has received Royal Assent.
- FCA of the United Kingdom issued an official press release urging all crypto asset companies engaged in user marketing to ensure compliance by October 2023.
In a move to enhance regulatory transparency for cryptocurrencies, the United Kingdom (UK) has taken a significant step by granting final approval to a bill concerning digital assets. As stated in a recent press release, the Financial Services and Markets Act (FSMA) 2023 has received Royal Assent, marking the conclusive stage in its journey towards becoming a law.
Deadline for Crypto Firms’ Compliance Approaching in October
The approved bill grants regulators the authority to establish a comprehensive framework that promotes the secure adoption of cryptocurrencies within the United Kingdom. Additionally, it empowers the HM Treasury of the UK to establish regulations specifically tailored to the crypto industry. Recently the Financial Conduct Authority (FCA) of the United Kingdom issued an official press release urging all crypto asset companies engaged in user marketing to ensure compliance by October 2023.
The notice specifies that crypto firms operating under the FCA’s regulatory framework have four options available to them for marketing while adhering to the guidelines set by the regulatory body. These include obtaining approval or communication of a promotion from an authorized entity.
Also, developing a promotion through a company registered with the FCA or having a promotion that falls under the exclusions specified in the Financial Services and Markets Act of the United Kingdom. According to the FCA, promotions include websites, online adverts, mobile applications, and social media posts.
In a recent LinkedIn post, Jayson Probin, the crypto financial promotions lead at the FCA, highlighted the consequences of non-compliance for crypto firms, stating that they could face criminal charges. The FCA notice reiterated this message, emphasizing that the regulatory body would take appropriate measures against firms engaging in illegal promotion within the UK. These actions may include placing the firm on a warning list and issuing demands to remove websites, apps, social media content, and other marketing channels.
Furthermore, this move aligns with the FCA’s three main goals, as listed in its business strategy for 2023-2024. Which are to limit major harm, promote higher standards, and encourage competition and positive industry changes.
Final Stages in the House of Commons
AdditionallyTeana Baker-Taylor, the Vice President for Policy and Regulatory Strategy at Circle, has expressed her appreciation for the bill’s approval and highlighted its achievements through a series of tweets. Additionally, she has provided an explanation of the bill’s significance and the goals it aims to accomplish.
1/ 🇬🇧 The UK’s Financial Services & Markets Bill has received Royal Assent, the final step for this major legislation, which brings #stablecoins into the regulatory perimeter, designates #crypto as regulated activity & supervision of #crypto promotionshttps://t.co/wG4D3sgDgz
— Teana Baker-Taylor (@TeanaTaylor) June 29, 2023
During the bill’s introduction in September, Graeme Biggar, the Director General of the National Crime Agency, said, “Domestic and international criminals have for years laundered the proceeds of their crime and corruption by abusing U.K. company structures and are increasingly using cryptocurrencies.” He added, “These long-awaited and much-welcomed reforms will help us crack down on both.”
With the approval from the Lords, the bill will now undergo its final stages in the House of Commons before it can be enacted into law. Once both houses reach a consensus on the bill’s content, they will then require the king’s signature to enact it officially. The bill may undergo multiple rounds of discussion and negotiation between the chambers of Parliament until a mutual agreement is reached.
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