UK Recognizes Crypto as Regulated Financial Activity, Driving Growth in the Digital Asset Industry. Financial Services and Markets Act 2023 grants regulatory powers to oversee cryptocurrencies and stablecoins, marking a pivotal moment for the UK’s financial sector.
- The UK has passed the Financial Services and Markets Act 2023, recognizing crypto as a regulated financial activity.
- The Act grants regulatory powers to the UK Treasury, Financial Conduct Authority, Bank of England, and Payments System Regulation Authority.
- It aims to create an advanced financial services sector, support UK businesses, and drive economic growth.
- The Act allows for the introduction and enforcement of regulatory rules for cryptocurrencies and stablecoins, with implementation expected within the next 12 months.
In a significant development for the digital asset industry, the United Kingdom has officially passed the Financial Services and Markets Act 2023, recognizing cryptocurrencies as a regulated financial activity within the country. The bill received royal assent and was approved by King Charles, marking a crucial moment for the future of crypto in the UK.
The newly enacted legislation grants regulatory powers to governing bodies, including the UK Treasury, Financial Conduct Authority (FCA), Bank of England, and Payments System Regulation Authority. These entities will now have the authority to introduce and enforce regulatory rules governing the digital asset industry.
With this move, the UK aims to foster an open, sustainable, and technologically advanced financial services sector, in line with its vision to grow the economy. Andrew Griffith, the Economic Secretary of the Treasury, emphasized that the landmark legislation provides control over the financial services rulebook, supporting UK businesses, consumers, and driving growth.
The Financial Services and Markets Act 2023 was introduced in July 2022, marking a significant reform in the regulatory landscape. The legislation expands the traditional powers of regulators to include oversight of the digital asset industry, bringing cryptocurrencies and stablecoins under the purview of financial regulations.
In addition to regulating digital assets, the Act incorporates provisions to supervise cryptocurrency advertising and extends payment regulations to cover stablecoins. The UK Treasury has been diligently working on developing the specific rules and guidelines for the crypto sector since February, with the aim of establishing the UK as a digital currency hub.
Financial Services Minister Andrew Griffith indicated that the regulatory rules for the crypto sector could come into effect within the next 12 months. This timeline highlights the government’s commitment to creating a secure and well-regulated environment for the introduction and growth of digital assets in the country.
The approval of the Financial Services and Markets Act 2023 by King Charles signifies a formalized procedure and solidifies the UK’s stance on increased supervision of cryptocurrencies and stablecoins. As the UK embraces this new era of regulation, it is expected to set an example for other countries seeking to establish clear guidelines for the burgeoning crypto industry.