U.K. Bill Granting Regulatory Power for Crypto and Stablecoins Receives Royal Assent

A measure establishing regulatory authority for cryptocurrencies and stablecoins has gotten royal approval from King Charles, becoming legislation, which is a big milestone for the cryptocurrency sector. After successfully completing all of its official steps, the Financial Services and Markets Bill now gives regulators the authority to watch over and control the cryptocurrency and stablecoin industries.

The Act, which gives the UK jurisdiction over the financial services regulatory framework, is an important step in the country’s effort to establish its regulatory system after Brexit. Andrew Griffith, the minister of financial services, underlined the significance of regulating cryptocurrency assets to guarantee their secure acceptance in the nation. The Act makes cryptocurrencies and stablecoins subject to regulation, giving authorities effective control and oversight over these digital assets.

Enhancing Financial Services Oversight

The law, which was initially introduced in July 2022, has undergone extensive review and revisions to increase regulatory control. All sorts of cryptocurrency activity are now considered regulated activities, and crypto promotion oversight has been instituted. Additionally, the measure broadens the application of payment regulations to include stablecoins, providing an additional level of regulation and safety.

The Treasury, Financial Conduct Authority (FCA), Bank of England, and the Payments Systems Regulator now have the power to create and implement regulations for the cryptocurrency and stablecoin industries. Since February, the Treasury has been actively participating in discussions, supporting the government’s goal of making the UK a major centre for the cryptocurrency industry. The government’s commitment to supporting innovation while guaranteeing consumer safety was highlighted by Financial Services Minister Andrew Griffith’s revelation that special regulations for the cryptocurrency sector may be put in place within the next year.

This important piece of legislation demonstrates the UK’s commitment to embracing digital assets and establishing a stable regulatory framework. The Act seeks to establish confidence in the cryptocurrency and stablecoin industries by providing clarity and control, luring investment and fostering the expansion of the nation’s fintech ecosystem.

The passage of the U.K. bill establishing regulatory authority for cryptocurrencies and stablecoins portends more scrutiny and regulation. Find out more about this important advancement.