On 27 May 2025, the Financial Markets Law Committee (FMLC) published a letter to HM Treasury regarding the draft Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025 (draft SI).
In the letter, the FMLC welcomes HMT’s publication of the draft SI, calling it “a vital step towards creating a sophisticated and competitive regulatory framework for cryptoasset services in the UK”. However, it also flags several draft provisions in the draft SI that it considers would create legal uncertainty in the financial markets and/or would result in seemingly unintended consequences if implemented in the current form. The FMLC sets out its areas of concern regarding the draft SI and proposes potential amendments.