UK approves crypto and stablecoins as regulated financial activity
A bill that aims to regulate cryptocurrencies and stablecoins in the UK has been approved by King Charles III. Dubbed the Financial Services and Markets Act 2023, the new law classifies trading cryptocurrencies as a regulated activity and brings stablecoins under the scope of payment rules.
The law gives regulators more power to govern financial systems, including the digital asset industry. The bill, which received approval from the UK Parliament last week, allows regulators including the Financial Conduct Authority (FCA), the Bank of England and the Payments Systems Regulator to introduce new rules in the digital asset sector.
Andrew Griffith, the Treasury’s economy minister, said the new law represents an opportunity to align financial services regulation with the UK market as the country is no longer part of the European Union (EU) . In addition, the law is expected to strengthen the audit and accountability powers of financial regulators.
“This groundbreaking piece of legislation gives us control over our financial services rulebook. It supports UK businesses and consumers and stimulates growth,” Griffith said in a statement. “By repealing old EU laws in Brussels, it will free up billions in investment money that can unlock innovation and grow the economy.”
Through the new legislation, the UK expects to promote the safe adoption of cryptocurrencies in the country. It also expects to create a framework to facilitate the testing of new technologies such as blockchain in the financial markets, the HM Treasury said further in the statement.
UK Curbs Crypto Promotions
The original version of the comprehensive bill was introduced last July and proposed regulating stablecoins under payment services rules. However, as the bill progressed through parliament, the amendment was introduced to treat crypto trading as a regulated activity. In addition, measures to control the promotion of digital assets were later included.
Griffith said in an April interview with CNBC that the specific rules for cryptocurrencies could be implemented within a year. According to Griffith, the move is part of an agenda to establish the UK as a global hub for cryptocurrency technology.
In the meantime,
Financial Magnatesreported that the EU passed the Markets in Crypto-Assets (MICA) regulation in May, making Europe the first jurisdiction to introduce comprehensive laws on digital assets. MiCA aims to protect European investors, promote environmental sustainability and prevent money laundering in the cryptocurrency industry.
A bill that aims to regulate cryptocurrencies and stablecoins in the UK has been approved by King Charles III. Dubbed the Financial Services and Markets Act 2023, the new law classifies trading cryptocurrencies as a regulated activity and brings stablecoins under the scope of payment rules.
The law gives regulators more power to govern financial systems, including the digital asset industry. The bill, which received approval from the UK Parliament last week, allows regulators including the Financial Conduct Authority (FCA), the Bank of England and the Payments Systems Regulator to introduce new rules in the digital asset sector.
Andrew Griffith, the Treasury’s economy minister, said the new law represents an opportunity to align financial services regulation with the UK market as the country is no longer part of the European Union (EU) . In addition, the law is expected to strengthen the audit and accountability powers of financial regulators.
“This groundbreaking piece of legislation gives us control over our financial services rulebook. It supports UK businesses and consumers and stimulates growth,” Griffith said in a statement. “By repealing old EU laws in Brussels, it will free up billions in investment money that can unlock innovation and grow the economy.”
Through the new legislation, the UK expects to promote the safe adoption of cryptocurrencies in the country. It also expects to create a framework to facilitate the testing of new technologies such as blockchain in the financial markets, the HM Treasury said further in the statement.
UK Curbs Crypto Promotions
The original version of the comprehensive bill was introduced last July and proposed regulating stablecoins under payment services rules. However, as the bill progressed through parliament, the amendment was introduced to treat crypto trading as a regulated activity. In addition, measures to control the promotion of digital assets were later included.
Griffith said in an April interview with CNBC that the specific rules for cryptocurrencies could be implemented within a year. According to Griffith, the move is part of an agenda to establish the UK as a global hub for cryptocurrency technology.
In the meantime,
Financial Magnatesreported that the EU passed the Markets in Crypto-Assets (MICA) regulation in May, making Europe the first jurisdiction to introduce comprehensive laws on digital assets. MiCA aims to protect European investors, promote environmental sustainability and prevent money laundering in the cryptocurrency industry.