Miscellaneous Cryptoassets Cryptoassets: amendments to the FSMA 2000
Section 69 ensures that cryptoassets are within scope of sections 21 and 22 of FSMA 2000 relating to regulated activities, and inserts a definition of "cryptoassets" which may be amended by HM Treasury.
	The changes complement section 71K(7) of FSMA 2000, as inserted by section 8 of this Act, which clarifies that cryptoassets are within scope of the designated activities regime. It also complements changes introduced by sections 22 and 23, and Schedule 6 of this Act to enable the regulation of cryptoassets used for payments, including so-called stablecoins (amongst any other digital assets used for payments, where these are within scope of the new concept of "digital settlement asset").
	The combined effect of sections 8 and 69 is to ensure that cryptoassets may be regulated within the framework established by FSMA 2000 (as extended by this Act).
	This will ensure that HM Treasury is equipped to respond to developments in cryptoassets more quickly, and deliver regulation in an agile, risk-based way consistent with our approach to the broader financial services sector. For instance, HM Treasury’s ability to amend the definition of "cryptoasset" by regulation allows HM Treasury to respond quickly to developments in the technology that underlies these cryptoassets.
	Given the fast-moving nature of the sector it is vital that the government has the flexibility to introduce regulation in an agile way using secondary legislation. This is an existing feature of the FSMA framework, in which HM Treasury sets the regulatory perimeter through secondary legislation.
	This section will also ensure that HM Treasury and the regulators can update the cryptoasset regulation as international standards are developed. For example, the government’s proposals will take account of the Financial Stability Board’s consultative proposals for the Regulation, Supervision and Oversight of Crypto-Asset Activities and Markets published in October 2022.