Key takeaways:
- The UK has formally passed legislation designating cryptocurrencies as a regulated financial activity.
- The measure has ramifications beyond improving financial services regulator oversight and accountability.
The UK has formally passed legislation designating cryptocurrencies as a regulated financial activity within the nation. After getting royal assent and King Charles’ approval on Thursday, the Financial Services and Markets Act 2023 is now formally a law.
The government described the act as “central” to its ambition to expand the economy and build an open, sustainable, and cutting-edge financial services industry in a statement issued today. As a result, this is a pivotal time for the nation’s digital asset industry.
A crucial breakthrough has occurred with the official passage of a bill in the UK that recognizes cryptocurrencies as regulated financial activities there. The account specifically gives regulators the authority to control cryptocurrency and stablecoins at a crucial juncture. The royal assent, which occurred on Thursday, was the actual last stage in the legislative process.
The method required for legislation to become a national law is known as Royal assent. Additionally, the Financial Services and Markets Bill is now an Act due to the development. Last week, the Parliamentary Chamber authorized it. King Charles finally gave his approval to today’stoday’s parliamentary measure.
The Treasury’s economic secretary, Andrew Griffith, hailed 2019 as a critical year for overhauling the nation’s financial sector. He declared:
“This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth.”
Griffith advised the Treasury Committee not to lump the FTX scam into cryptocurrency in general at the height of the crisis, saying that the nation should still look for prospects in the technology under “a well-calibrated regulatory response.”
The law, which first surfaced in July 2022, changed the way in which regulators used to have authority over the financial industry. As a result, it now gives them the authority to regulate the digital asset sector as well.
The bill ultimately grants the ability to create and enforce regulatory regulations in the sector to the UK Treasury, Financial Conduct Authority, Bank of England, and Payments System Regulation Authority. The implementation of those regulations ought to start at this point. According to Griffith, regulations for the cryptocurrency industry could appear as soon as the following year.
The measure has ramifications beyond improving financial services regulator oversight and accountability. Transparency, regular reporting, and a stronger emphasis on cost-benefit evaluations are its main focuses. These adjustments are intended to promote economic expansion in the UK and increase its global competitiveness.
