UK approves bill to recognise crypto trading as regulated financial activity
The Financial Services and Markets Bill, previously passed by the House of Lords of the UK Parliament, received Royal Assent, making the bill law.
The Treasury of the United Kingdom reported that King Charles III approved the bill subsequently granting regulators the authority to oversee the crypto sphere and categorising crypto trading as a regulated activity.
Now UK regulators possess extended powers to develop and enforce regulations governing the crypto sector. Moreover, regulators are also authorised to experiment with the use of blockchain technology in financial markets. Additionally, stablecoins have been officially recognised as a means of payment.
With the aim of increasing the competitive advantage of the UK as a global financial centre and creating a favourable environment for businesses and consumers, the newly enacted law aligns with the UK Prime Minister’s vision of transforming the country into a global crypto hub.
After consideration in parliament, amendments were made to the bill, which define all cryptocurrencies as regulated activities, and also give regulatory authorities the right to supervise their advertising. As part of these regulatory reforms, a comprehensive set of rules will be implemented within the upcoming year.
Economic Secretary to the Treasury, Andrew Griffith, has emphasised the significance of the ongoing financial sector reform in the country, highlighting the role of the recently enacted legislation in enabling regulatory control over financial services. Griffith views this law as a catalyst for driving economic growth, while also eliminating old EU rules to attract substantial investments.
Earlier the EU adopted a comprehensive framework called Markets in CryptoAssets (MiCA) to regulate crypto assets and safeguard consumer interests. Additionally, temporary regulations were approved by the European Parliament to protect the banking system from potential risks associated with “unbacked” cryptocurrencies.