The Royal Assent in the United Kingdom (UK) has approved the Financial Services and Markets Bill (FSMB).
This bill represents a proactive effort by the United Kingdom to strengthen its financial ecosystem. The UK government has been focusing on the Financial Services and Markets Bill for some time.
They view its passage as a means to expand the economy. It also fosters the development of a competitive, open, and technologically advanced financial services industry.
Therefore, a critical aspect of the FSMB is its roadmap for regulating crypto assets as financial products. This regulation aims to facilitate the secure adoption of cryptocurrencies in the United Kingdom.
The US has faced challenges in publishing effective legislation in this area. The progress made by the United Kingdom has raised concerns that the US may need to catch up in embracing innovative technologies.
However, the recently approved UK Bill also considers broader innovation related to blockchain technology. It establishes “sandboxes” that allow for new technologies like blockchain in financial markets.
The United Kingdom’s regulatory approach to Cryptocurrencies
Andrew Griffith, the Economic Secretary to the Treasury, described 2023 as a landmark year for reforming the UK’s financial services. He emphasized that the Financial Services and Markets Bill gives the UK control over its financial services rulebook, benefiting businesses, consumers and driving growth.
The UK’s assent to the Bill sets a good example for other countries looking to regulate the crypto environment. By defining cryptocurrencies as regulated products, the UK is positioning itself as one of the most advanced countries in the G7.
While the European Union is also making progress in regulating cryptocurrencies through its Markets in Crypto Assets (MiCA) policy, the UK is arguably taking the lead.
It is expected to implement regulations sooner. Overall, the Financial Services and Markets Bill is a significant step toward Prime Minister Rishi Sunak’s goal of making the UK a hub for cryptocurrencies.
