Last Updated on 16 October 2023 by Admin
Andrew Griffith, the City minister, has encouraged the UK regulator to be more lenient and transparent with the new crypto advertising rules. As a result of their divergent views on the digital asset market, these policies have stoked conflict.
Griffith wrote to the Financial Conduct Authority (FCA) on October 5 to voice crypto businesses’ worries about the regulations, which prevent unlicensed crypto firms from advertising to clients in the UK.
The Financial Conduct Authority’s main goal is to safeguard investors from the risks connected with crypto assets. The value of these assets plummeted last year, bringing down marketplaces like FTX.
It’s crucial that these safeguarding standards apply to all cryptocurrency businesses, no matter where they’re based—in the UK or elsewhere. Anyone found in violation of these laws will be subject to harsh punishments, including up to two years in jail and substantial fines.
When concerns were received from crypto businesses concerning the FCA’s extensive requirements and the lack of precise advice on compliance, Griffith contacted FCA CEO Nikhil Rathi.
For the sake of the UK’s crypto dominance, Griffith has called on the regulator to exercise “forbearance” towards these businesses throughout their transition period and offer final guidance without unnecessary delay.
The British government, led by Prime Minister Rishi Sunak, has been vocal in its support of cryptocurrency and promotion of a legal framework for the industry. He tweeted his position in April 2022, while he was still chancellor.
Taniya Sharma
Tabrez Alam