UK Government All Set to Regulate Cryptocurrencies
London: 21 August 2023 (TraderMade) The United Kingdom government is taking positive steps to become a crypto hub shortly. The latest approval by King Charles III to the Financial Services and Markets Bill (FSMB) is being highly discussed in the global financial landscape today.
The bill brings more power to financial regulators. This is a comprehensive act that brings financial services under the monitoring of regulators. It has some ground-breaking provisions for digital assets. Let us reveal more about the newly approved bill.
How the UK Government Plans to Regulate Crypto
The FSMB enables the UK’s treasury, the central bank (Bank of England or BoE), and the Financial Conduct Authority (FCA) to consider cryptocurrencies a regulated financial activity.
Thus, the parliament can discuss and implement secondary legislation to regulate the crypto sector in the country. The bill has a few more significant provisions, such as:
- It allows supervision of crypto promotions.
- Stablecoins will be within the existing payment rules.
So, digital asset firms should register with the FCA and follow the regulations while conducting their business in the country.
The upper house of the parliament approved the bill in the last week of June. Thus, cryptocurrencies will be considered a regulated financial activity, and stablecoins will be a means of payment under the existing laws.
However, the UK government had kept its plan for Royal Mint NFT halted from March. Meanwhile, some giant digital asset conferences dropped London as the venue for their events in recent months.
The crypto industry was deflated after the collapse of the popular crypto exchange - FTX. However, the recent steps by the UK government bring energizing waves.
The latest steps by the UK government reinforce its commitment to turn the UK into a crypto hub. Along with other countries, like Singapore, Dubai, and Hong Kong, the UK takes a leap ahead in setting the ground for crypto and web3.
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