UK City Minister Andrew Griffith has called for more clarity and flexibility in the country’s recently enacted crypto advertising rules, according to a Financial Times report. The rules, which became effective earlier this month, are among the strictest in the world and are designed to enhance consumer protection within the crypto market, and were introduced shortly after the collapse of several crypto firms late last year.
Minister’s Request for Flexibility
Griffith’s request was expressed in a letter to the Financial Conduct Authority (FCA) just days before the rules were implemented. He relayed concerns voiced by crypto companies regarding the broad scope of the regulations and the absence of final guidelines from the FCA on compliance. The Minister, who has consistently advocated for the UK’s prominence in the crypto industry, urged the FCA to demonstrate “forbearance” by giving crypto firms some leeway in adapting to the new regulations. He also called for prompt publication of the final guidance to assist firms in understanding and complying with the rules.
Conflicting Opinions
According to the Financial Times report, the push for leniency is somewhat at odds with the FCA’s role as a regulator committed to ensuring consumer protection in financial markets. The article also noted that there are differing opinions within the government, with a perception that the FCA’s board and leadership may lack the necessary digital expertise.
“Treasury and politicians jump up and down and make lots of noises about being financial centres and encouraging competition and the FCA is rightly or wrongly getting increasingly risk averse,” said Matthew Baker, a partner at law firm Bryan Cave.
The FCA has, in the past, raised concerns about the government’s accelerated implementation of the rules, indicating that this may pose challenges to the industry. This was also highlighted by the Financial Times, which quoted Matthew Baker, a partner at law firm Bryan Cave, as saying that politicians and regulators “pull in opposite directions.”
