The UK’s cryptocurrency bill becomes law, granting regulatory oversight and establishing a legal framework for crypto transactions in the country.
- The UK’s highly anticipated cryptocurrency bill has officially become law, granting regulatory oversight of cryptocurrencies and stablecoins.
- The legislation aims to establish a legal framework for crypto transactions, covering various cryptocurrencies, stablecoins, and NFTs.
- Provisions include AML procedures, KYC protocols, and regulatory sandboxes for fintech innovation.
- The UK seeks to foster growth, innovation, and safety in the crypto industry, positioning itself as a global crypto hub.
In a significant development for the financial sector of the United Kingdom, the highly anticipated cryptocurrency bill has officially become law. Acknowledging the growing significance of decentralized finance, the UK joins a list of countries embracing the upcoming shift. Following a thorough legislative process, the crypto bill has received the royal assent, heralding a new era for blockchain technology in the country.
King Charles of the UK granted his approval to the landmark bill on Thursday, empowering regulators to oversee cryptocurrencies and stablecoins. This final stage of royal assent, following the approval of lawmakers, elevates the Financial Services and Markets Bill to the status of an Act of Law.
The legislation incorporates cryptocurrency into the realm of regulatory oversight, a move approved by the upper chamber of Parliament last week. Financial Services Minister Andrew Griffith emphasized that the Act provides the UK with control over its financial services rulebook, a consequence of its departure from the EU. This grants them the authority to regulate crypto assets and ensures their safe integration into the UK financial system.
1/ 🇬🇧 The UK’s Financial Services & Markets Bill has received Royal Assent, the final step for this major legislation, which brings #stablecoins into the regulatory perimeter, designates #crypto as regulated activity & supervision of #crypto promotionshttps://t.co/wG4D3sgDgz
— Teana Baker-Taylor (@TeanaTaylor) June 29, 2023
About the New Legislation
Introduced to lawmakers in 2022, the cryptocurrency bill encompasses a wide range of regulations for the rapidly growing field of decentralized finance. It covers various cryptocurrencies such as Bitcoin and Ethereum, stablecoins, and non-fungible tokens (NFTs). This comprehensive bill aims to establish a much-needed legal framework for crypto transactions, offering protection and clarity for individuals and businesses in the UK.
While much debated, the bill has consistently aimed to create an enabling environment that fosters growth and innovation in the crypto space, while also providing robust protections against fraud and financial crimes.
The law includes provisions for anti-money laundering (AML) procedures, know your customer (KYC) protocols, and regulations governing the issuance and operation of stablecoins and other digital assets. Additionally, it introduces regulatory sandboxes, allowing innovative fintech companies to test their products and services in a controlled environment.
The UK’s Treasury, Financial Conduct Authority, Bank of England, and Payments Systems Regulator will soon possess the power to initiate and enforce regulations for the crypto sector. Since February, the Treasury has been actively seeking feedback on proposed guidelines for the industry, aligning with the Conservative Government’s ambition to establish the UK as a global crypto hub. Economic Secretary Andrew Griffith anticipates the implementation of detailed crypto-specific regulations within the next 12 months.
The passage of the cryptocurrency bill signals a significant step forward in the UK’s approach to digital assets and blockchain technology. With regulatory oversight in place, the country aims to foster innovation while ensuring the safety and legitimacy of the crypto industry.