UK Passes Bill Recognizing Crypto as Regulated Financial Activity

• The UK has officially passed the Financial Services and Markets Act 2023
• The bill recognizes crypto as a regulated financial activity within the country
• The act received royal assent and was approved by King Charles on Thursday
• The move places the UK ahead of the US in terms of acceptance

UK brings regulations to crypto

The Financial Services and Markets Bill (FSMB) received Royal Assent from King Charles on Thursday. The passing of the bill means that crypto will now be recognized as a regulated financial activity, bringing it within the established regulations for the market. In an official statement following the Royal Assent, the Economic Secretary to the Treasury, Andrew Griffith, stated, “This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth.”

According to the UK government, the bill also contains new powers available due to Brexit. Reportedly, it could unlock around £100 billion for productive investment and help cultivate innovation and grow the economy in the country.

The FSMB lays groundwork for blockchain sector

The FSMB will also lay the groundwork for the advancement of the blockchain sector, in addition to establishing the following:

• Enhances the scrutiny of the financial services regulators to ensure clear accountability, appropriate democratic input, and transparent oversight.
• Removes unnecessary restrictions on wholesale markets, implementing the key outcomes of the Wholesale Markets Review.
• Protects free access to cash under the law and introduces crucial protections for victims of Authorized Push Payment scams.
• Enables the regulation of crypto assets to support their safe adoption in the UK.
• Establishes ‘sandboxes’ that can facilitate the use of new technologies, such as blockchain, in financial markets.

Following the approval, the United Kingdom joined the European Union in spirit, as the bloc was one of the first major administrations in the world to bring crypto under the scope of regulations. The EU Markets in Crypto Assets (MiCA) bill paved the way for other governments to bring regulations on a large scale, allowing crypto development at a rapid rate.