On Thursday, King Charles granted approval to a landmark bill in the United Kingdom that grants regulatory authorities the authority to oversee cryptocurrencies and stablecoins. This milestone signifies the final formal stage, officially enacting the Financial Services and Markets Bill into law. The bill, which was previously endorsed by the upper chamber of Parliament, encompasses provisions to subject cryptocurrencies to regulation.
Financial Services Minister Andrew Griffith stated that the Act empowers the country to control its financial services rulebook, particularly concerning crypto assets, thereby promoting their secure adoption within the United Kingdom. This development follows the U.K.’s departure from the European Union.
Introduced in July 2022, the bill expands regulators’ jurisdiction over the financial system, including cryptocurrencies. During its parliamentary deliberations, amendments were introduced to classify all cryptocurrencies as regulated activities and to supervise cryptocurrency promotions. Furthermore, the bill extends the regulatory framework to cover stablecoins under payment regulations.
The Treasury, Financial Conduct Authority, Bank of England, and the Payments Systems Regulator in the U.K. will soon have the ability to establish and enforce regulations to govern the cryptocurrency sector. The Treasury has been soliciting feedback on its proposed regulations for the sector since February, aligning with the Conservative Government’s objective of positioning the country as a cryptocurrency hub. Economic Secretary Andrew Griffith informed CNBC in April that specific regulations for the crypto sector may be implemented within the next 12 months.
