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UK Crypto Regulation Bill Receives Royal Assent

Updated: Jul 20, 2023


King Charles III
King Charles III. Image source: Getty Images

LONDON, UK – The United Kingdom took a significant step towards comprehensive crypto regulation as the Financial Services and Markets Bill received royal assent from King Charles on Thursday. This milestone signifies the bill's official transformation into law, empowering regulators to supervise cryptocurrencies and stablecoins. The move reflects the UK government's commitment to maintaining control of its financial services after the country's departure from the European Union.


UK Crypto Regulation Bill Deliberated


Initially introduced in July 2022, the bill has undergone parliamentary deliberation, resulting in key amendments aimed at treating all crypto activities as regulated and implementing oversight for crypto promotions. Moreover, the Act extends payment rules to cover stablecoins, ensuring a more comprehensive regulatory framework.


The regulatory bodies involved, namely the Treasury, Financial Conduct Authority (FCA), Bank of England, and Payments Systems Regulator, will soon have the authority to establish and enforce rules within the crypto sector. This move will enhance the UK's ability to oversee and shape the development of the industry while safeguarding consumer interests.


Leading Crypto Hub


The Treasury has been actively seeking input and suggestions for its proposed regulatory framework since February, aligning with the Conservative Government's ambition to position the UK as a leading crypto hub. In April, Financial Services Minister Andrew Griffith disclosed to CNBC that specific rules for the crypto sector could be anticipated within the next 12 months, highlighting the government's proactive approach to fostering responsible and sustainable growth.


Innovation With Consumer Protection


The approval of the Financial Services and Markets Act solidifies the UK's commitment to regulating the crypto and stablecoin sectors, placing it on a path to become a global leader in responsible cryptocurrency oversight. By expanding regulatory control, the government aims to balance innovation with consumer protection, ensuring the safe adoption and use of cryptocurrencies within the country's financial ecosystem.


As the Treasury and regulatory bodies begin to introduce and enforce the new rules, the UK is expected to witness further development in its crypto industry, attracting investment and establishing a secure and thriving digital asset landscape.

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