The UK approves a law recognizing cryptocurrencies as a financial activity

With King Charles III's approval of the Financial Services and Markets Bill (FSMB), the cryptocurrency sector became a regulated financial activity in the United Kingdom.

The final sanction of the bill was announced on June 29 by A.J launch Issued by the Financial Services Authority (FSA).

In its publication, the organization highlights the fact that it supports the new law Learn about the ecosystem of Bitcoin (BTC) and other cryptocurrencies as a vital part of the country's development.

The goal, according to the post, is: Support its use in the country. This is because “transparent supervision is ensured and unnecessary restrictions are removed.”

The bill, which was already approved by the House of Representatives last week, stipulates that the Financial Conduct Authority, the Bank of England and the Payment Systems Regulatory Authority Responsible for developing and enforcing standards to regulate the sector.

In this sense, the Treasury's Economy Secretary, Andrew Griffiths, said that the rules for this sector are likely to be It comes into force in the next 12 months.

As reported by CriptoNoticias, this organization has been conducting a series of public consultations since 2021 to find out the opinion of various sectors and thus determine the rules that will be applied. One of the main regulations that must be determined concerns the method inclusion stablecoins For payment systems.

In addition, the law establishes an investigation Sandboxes (sandboxes) as a means of testing and identifying practical applications as well as facilitating them The use of new technologies, such as blockchains, in financial markets.

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In this sense, the publication highlights the importance of financial markets and services law As a means of developing the economy “Creating an open, sustainable, and technologically advanced financial services sector.” All this, within the framework of the economic strategies determined by the government for the economy after Brexit, and the United Kingdom’s exit from the European Union in 2020.

In this regard, Griffiths believes that with this law it will be possible Strengthening the UK's competitiveness as a global financial centre Providing protection and support to consumers and businesses. It's an idea shared by Prime Minister Rishi Sunak, even though he is an outspoken supporter of central bank digital currencies (CBDC).

The Act gives us control over our financial services rulebook, following the UK's exit from the European Union, allowing crypto assets to be regulated to support their secure adoption in the UK.

Andrew Griffiths, Economic Secretary to the Treasury

Financial Markets and Services Law Introduced in July 2022. Thus, the old European Union laws that were applied in the United Kingdom before Brexit will be abolished. The intention of the regulators is to develop their own rules to reassert their independence and gain greater control over their financial system.

After approval of the law in the United Kingdom It joins the growing list of countries that already have a defined regulatory framework in place For cryptocurrencies. This is after the adoption of the MiCA law, which will regulate this sector in 27 European Union countries.

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