The UK Recognizes Cryptocurrencies and Digital Assets
- The UK joins the list of countries with a regulatory framework for crypto and digital assets.
- The new bill emphasizes regulatory transparency and democratic input.
- The bill positions the UK as a potential hub for crypto services.
The United Kingdom has officially recognized cryptocurrencies and digital assets as it passed the Financial Services and Markets Bill (FSMB). The bill, which has been approved by King Charles, is similar to the European Union’s Market in Crypto Assets (MiCA) bill. It extends regulatory measures to cryptocurrencies and stablecoins and includes crypto trading as a regulated financial activity in the UK.
A statement from the Economic Secretary to the Treasury, Andrew Griffith, remarked that the new bill is a vital part of the government’s plans to develop a sustainable, open, and advanced financial system.
This act is designed to modify financial services regulation to match the specific needs of the U.K. market and to fill the gap left by Brexit. Officials noted that the new bill will improve outcomes for both users and businesses in the UK and also boost the UK’s plans to become a global financial powerhouse.
Andrew Griffith said in a statement,
This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth.
The UK’s decision to bring crypto trading under the scope of regulation comes months after it expressed uncertainty following the collapse of FTX, a major player in the industry.
At the time, Griffith advised the Treasury Committee not to associate the broader crypto market with the FTX scam but instead explore opportunities within the industry and provide a “well-calibrated regulatory response.”
The new bill provides room for a safe adoption of cryptocurrencies in the UK and calls for the creation of “sandboxes” to help financial markets adopt cutting-edge technologies like blockchain.
The bill also promotes transparent regulatory oversight and democratic input and eliminates unnecessary market restrictions.
Europe has seen a huge increase in cryptocurrency activities since MiCA received approval, and the UK could possibly witness a similar experience. Despite having a smaller crypto community than the US, the UK’s regulatory clarity on digital assets places it above the United States in terms of acceptance.
I have covered some exciting stories in my career as a journalist and find blockchain-related stories very intriguing. I believe Web3 will change the world and want everyone to be a part of it.
