UK bill on cryptocurrencies and stablecoins has been approved by King Charles, passing it into law. The Financial Services and Markets Act 2023 categorises trading crypto as a regulated activity.
Under the new law, regulators gain the authority over financial systems. This bill empowers regulatory bodies such as the Financial Conduct Authority (FCA), the Bank of England, and the Payments Systems Regulator to establish new regulations within the digital asset industry.
Economic Secretary to the Treasury, Andrew Griffith, said:
This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth.
Introduced in July 2022, the legislation expands the authority of regulators over the financial system, encompassing cryptocurrencies. The bill underwent parliamentary discussions, amendments were incorporated to classify all crypto-related activities as regulated and to oversee crypto promotions, as well. Furthermore, the bill brings stablecoins to the existing framework of payment regulations.
HM Treasury added in its official statement that the new regulation allows the country to establish new rules that can facilitate the testing and use of new technologies such as blockchain in financial markets.
Earlier this year, the European Union introduced new regulations for cryptocurrencies with the Markets in Crypto-Assets, or MiCA, legislation, which aims to provide a regulatory framework for cryptocurrencies and stablecoins in the bloc.
