In a significant development for the cryptocurrency industry, the United Kingdom has passed a landmark bill officially recognizing cryptocurrencies as regulated financial activities. The decision comes as the UK government seeks to establish a comprehensive framework to govern the growing digital asset sector.
The Financial Services and Markets (FSMB) Act 2023 has been granted Royal Assent, marking a significant step towards regaining control of the UK’s financial services rulebook.
The Act aims to enhance the competitiveness of the UK as a global financial centre and provide favourable outcomes for consumers and businesses by adapting financial services laws to suit the UK markets.
The bill underwent significant transformations during parliamentary debates. Amendments expanded its scope to treat all cryptocurrencies as regulated activities, and it also included provisions for supervising crypto promotions. With the approval of the House of Lords, the Financial Services and Markets Act 2023 has now become law, following a rigorous parliamentary process involving multiple stages and the Royal Assent.
In July 2022, when the bill was first introduced, it altered the conventional authority of regulators over the financial system. As a result, the digital asset industry is now under regulatory control.
The approval of the Financial Services and Markets Act 2023 marks the beginning of a new chapter in the UK’s approach to digital finance. The UK is positioning itself as a leader in the crypto industry by embracing the transformative potential of cryptocurrencies and providing a regulatory framework for their safe integration, paving the way for innovation and growth in this rapidly evolving sector.