Financial Services and Markets Bill – in a Public Bill Committee at 11:30 am on 3rd November 2022.
“(1) FSMA 2000 is amended as follows.
(2) In section 21 (restrictions on financial promotion), in subsection (14) at end insert ‘(including where an asset, right or interest is, or comprises or represents, a cryptoasset)’.
(3) In section 22 (regulated activities), in subsection (4) at end insert ‘(including where an asset, right or interest is, or comprises or represents, a cryptoasset)’.
(4) In section 417 (definitions)—
(a) in subsection (1), insert at the appropriate place—
‘“cryptoasset” means any cryptographically secured digital representation of value or contractual rights that—
(a) can be transferred, stored or traded electronically, and
(b) that uses technology supporting the recording or storage of data (which may include distributed ledger technology).’;
(b) at end insert—
‘(5) The Treasury may by regulations amend the definition of “cryptoasset” in subsection (1).’
(5) In section 429 (Parliamentary control of statutory instruments), in subsection (2) leave out ‘or 333T’ and insert ‘, 333T or 417(5)’.”
This new clause amends the Financial Services and Markets Act 2000 to clarify that the powers relating to financial promotion and regulated activities can be relied on to regulate cryptoassets and activities relating to cryptoassets. Cryptoasset is also defined, with a power to amend the definition.