The UK has officially passed a bill that recognizes crypto as a regulated financial activity within the country. Indeed, the Financial Services and Markets Act 2023 has officially become law after receiving royal assent and being approved by King Charles on Thursday.
In a press release issued today, the government noted the act as “central” to its vision “to grow the economy and create an open, sustainable, and technologically advanced financial services sector.” Subsequently, this represents a crucial moment for the digital asset industry in the country.
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UK Crypto Bill Receives Royal Assent
The UK has officially passed a bill that recognizes crypto as a regulated financial activity within the country and represents a vital development. Specifically, the bill grants regulators the power to govern crypto and stablecoins at a massive turning point. Indeed, the final step of the legislative process was the royal assent, which took place on Thursday.
A Royal assent is the procedure necessary for legislation to pass into law within the country. Moreover, the development has now made the Financial Services and Markets Bill an Act. It had been approved by the Chamber of Parliament last week. Finally, King Charles approved the legislative action today.
Andrew Griffith, Economic Secretary of the Treasury, spoke on the decision. He stated, “This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth.”
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The bill was first introduced in July 2022 and reformed the traditional power of regulators over the finance system. Subsequently, it now grants them the regulatory power to govern the digital asset industry as well.
Ultimately, the bill allows the UK Treasury, Financial Conduct Authority, Bank of England, and the Payments System Regulation Authority to both introduce, and enforce, regulatory rules in the industry. Now, the development of those rules should begin to take effect. Griffith told CNBC that crypto sector rules could come as soon as within the next 12 months.