World Crypto Global
- Written by: Jared Kirui
- Fri, 30 Jun 2023
- Israel
A bill that aims to regulate cryptocurrencies and stablecoins in the UK has been approved by King Charles. Dubbed the Financial Services and Markets Act 2023, the new law classifies the trading of cryptocurrencies as a regulated activity and brings stablecoins under the scope of payment rules.The Financial Services and Markets Act 2023 gives regulators more power to govern financial systems, including the digital assets. The bill, which got the approval of the upper house last week, permits the regulators, including the Financial Conduct Authority (FCA), the Bank of England, and the Payments Systems Regulator, to introduce new rules in the digital asset sector.Unlocking InnovationAndrew Griffith, the Economic Secretary to the Treasury, said that the new law presents an opportunity to tailor the regulations of financial services to the UK market since the country left the EU. Additionally, it is expected to enhance the scrutiny and the accountability of the regulators."This landmark piece of legislation gives us control of our financial services rulebook. It supports the UK businesses and the consumers, and drives growth," Griffith said. "By repealing old EU laws set in Brussels, it will unlock billions in investment cash that can unlock innovation and grow the economy."Through the new legislation, the UK expects to promote the safe adoption of cryptocurrencies in the country. Additionally, it will create a framework to facilitate the testing of new technologies like the blockchain technology in the financial markets, the HM Treasury said in the statement. The UK Curbs Crypto PromotionsThe original version of the comprehensive bill was introduced in July last year and proposed to regulate stablecoins under the payments services rules. However, as the bill progressed through parliament, the amendment to treat crypto trading as a regulated activity was introduced. Additionally, the measures to control the promotion of digital assets were later included.Griffith said in an interview with CNBC in April that the specific rules for cryptocurrencies could be introduced within a year. According to Griffith, the step is part of an agenda to establish the UK as a global hub for the cryptocurrency technology.Meanwhile, Finance Magnates reported that the EU passed the Markets in Crypto-Assets (MICA) regulation in May, making Europe the first jurisdiction to introduce comprehensive laws on digital assets. MiCA aims to protect European investors, promote environmental sustainability, and prevent money laundering in the cryptocurrency sector. This article was written by Jared Kirui at www.financemagnates.com.
